13099 Stats Year Book 09 Re

The UK Film Council is the Government-backed lead agency for film in the UK ensuring that the economic, cultural and educational aspects of film are effectively represented at home and abroad. Our goal is to help make the UK a global hub for film in the digital age, with the world’s most imaginative, diverse and vibrant film culture, underpinned by a flourishing, competitive film industry. We want to ensure there are no barriers to accessing our printed materials. If you, or someone you know, would like a large print, Braille, disc or audiotape version of this report, please contact our Communications Department at the following address: UK Film Council 10 Little Portland Street London W1W 7JG T +44 (0)20 7861 7861 F +44 (0)20 7861 7863 [email protected] www.ukfilmcouncil.org.uk Welcome to the 2009 UK Film Council Statistical Yearbook. This yearbook, the seventh we have published, is a rich source of industry data and analysis on film in the UK. This publication is one of the ways we deliver on our commitment to evidence- based film policy. We hope you enjoy this yearbook and find it useful. Contents

2008 – the year in review ...... 4 8.5 Box office performance of four types of UK production in the UK and Ireland...... 58 Chapter 1: The box office ...... 6 8.6 International release rate of UK films ...... 59 1.1 Admissions...... 7 8.7 International release rate of four types 1.2 Box office earnings ...... 8 of UK production...... 59 1.3 Film releases and box office revenues...... 8 8.8 International box office performance 1.4 Country of origin of film releases...... 10 of four types of UK production...... 60 8.9 Comparative box office performance Chapter 2: Top films in 2008 ...... 12 while controlling for film budget...... 61 2.1 The top 20 films ...... 13 8.10 Release opportunities analysis ...... 64 2.2 The top 20 UK films...... 14 8.11 Local and overseas share of 2.3 Best weekend performances of UK films...... 15 box office of UK films...... 65 8.12 Financial success analysis ...... 66 Chapter 3: Top films of all time at the UK box office...16 3.1 All time top 20 films at the UK box office ...... 17 Chapter 9: Distribution ...... 68 3.2 Inflation-adjusted top 20 films at the 9.1 Distributors in 2008 ...... 69 UK box office ...... 18 9.2 Distributors 2004–2008 ...... 70 3.3 All time highest grossing UK films...... 19 9.3 Weekend box office...... 71 3.4 All time top 10 independent UK films ...... 20 9.4 Release costs...... 72

Chapter 4: Genre and BBFC classification ...... 21 Chapter 10: Exhibition ...... 73 4.1 Genre ...... 22 10.1 UK cinema sites ...... 74 4.1.1 Genre of all film releases...... 22 10.2 UK screens ...... 74 4.1.2 Genre of UK film releases...... 25 10.3 Screen location ...... 75 4.2 BBFC classification ...... 26 10.4 Screen density and admissions per 4.2.1 Releases by classification...... 27 person – international comparisons ...... 75 4.2.2 Box office by classification ...... 28 10.5 Screen density and admissions per person in the UK ...... 76 Chapter 5: Specialised films ...... 32 10.6 Areas of ‘cinema deprivation’ in England...... 78 5.1 Specialised films at the UK box office in 2008 .....33 10.7 Type of cinema screens by nation 5.2 Foreign language films...... 34 and region ...... 79 5.3 Documentaries ...... 39 10.8 Mainstream, specialised and 5.4 Re-releases of classic and archive films...... 40 South Asian programming ...... 80 10.9 Exhibitors...... 82 Chapter 6: UK films internationally...... 42 10.10 Exhibitor revenues...... 83 6.1 UK films worldwide...... 43 10.11 Digital projection...... 83 6.2 UK films in North America ...... 44 10.11.1 Digital Screen Network (DSN) ...... 83 6.3 UK films in Europe...... 46 10.11.2 Digital screens worldwide and in the UK...... 83 6.4 UK films in Latin America ...... 48 10.11.3 3D and alternative content programming ...... 85 6.5 UK films in Australasia...... 48 10.12 Community cinema in the UK...... 86

Chapter 7: UK talent and awards ...... 49 Chapter 11: Film on video ...... 88 7.1 UK story material...... 50 11.1 Film in the retail video market ...... 89 7.2 UK actors ...... 51 11.2 Film in the video rental market...... 92 7.3 UK directors ...... 52 11.3 Hardware...... 93 7.4 Awards for UK films 2001–2008...... 53 Chapter 12: Film on UK television ...... 94 Chapter 8: Theatrical release history and comparative 12.1 Programming on network channels...... 95 performance of UK films ...... 55 12.2 Peak time on network television...... 96 8.1 Theatrical release of UK films ...... 56 12.3 Audiences for film on network television...... 97 8.2 UK films defined...... 56 12.4 Top films on network television...... 97 8.3 Release rate of UK films in the 12.5 Films on multi-channel television...... 99 UK and Ireland...... 57 12.6 The audience for film on all 8.4 Release rate of four types of UK television channels 1999–2008 ...... 102 production in the UK and Ireland ...... 58 12.7 The value of feature film to broadcasters...... 103

2 –UK Film Council Statistical Yearbook 2009 Chapter 13: Video on Demand...... 104 Chapter 18: Public investment in film in the UK ...... 146 13.1 Current size of the UK market ...... 105 18.1 Public funding for film in the 13.2 Video on Demand services in the UK...... 105 UK by source ...... 147 13.3 Future prospects for the VoD market ...... 107 18.2 Film spend by organisation...... 150 18.3 Activities supported by public Chapter 14: The UK film market as a whole ...... 108 spend on film ...... 151 14.1 The UK filmed entertainment market 18.4 Large film awards by agency 2007/8...... 151 as a whole ...... 109 18.5 Leading public funders of British film 14.2 The UK market in the global context...... 110 production 2006–2008...... 152 14.3 The evolution of UK film revenues 1998 to 2008 ...... 112 Chapter 19: Film industry companies...... 154 14.4 The impact of recession ...... 113 19.1 Number of companies in the film and video industries...... 155 Chapter 15: Audiences...... 114 19.2 Changing size distribution 15.1 Cinema audience by gender ...... 115 of film companies ...... 156 15.2 Film preferences by gender...... 115 19.3 National/regional distribution of film 15.3 Cinema audience by age...... 116 companies in the UK ...... 158 15.4 Film preferences by age ...... 118 19.4 Leading film companies in the 15.5 Cinema audience by social group...... 120 UK and Europe ...... 159 15.6 Film preferences by social group ...... 120 19.5 Leading film production companies 15.7 Film audiences by ethnicity...... 121 in the UK and Europe...... 161 15.8 Film audiences by disability...... 122 15.9 Film preferences by region...... 123 Chapter 20: The UK film economy ...... 163 15.10 Film downloads from the Internet...... 123 20.1 Film industry turnover 1995–2007 ...... 164 15.11 Comparative profiles of cinema audiences 20.2 Film industry contribution to and audiences for film on television...... 125 GDP 1995–2007...... 165 15.12 Cinema-goers’ preferences by age for cinema, 20.3 Economic impact of the film industry ...... 167 DVD and television...... 126 20.4 Film exports 1995–2007 ...... 168 15.13 Total size of film audience in the UK...... 127 20.5 Film imports 1995–2007...... 169 20.6 The film trade balance 1995–2007...... 169 Chapter 16: Films certified as British 1998–2008 ...... 128 20.7 Film export markets ...... 170 16.1 Qualifying as an official British film ...... 129 20.8 UK film exports compared with the 16.2 Schedule 1 films 2008...... 129 global market for filmed entertainment...... 170 16.3 Official UK co-productions 2008 ...... 130 20.9 The geographical distribution 16.4 All films certified as British 1998–2008 ...... 131 of the UK’s film trade surplus ...... 171

Chapter 17: Film production...... 134 Chapter 21: Employment in the film 17.1 The value of UK production in 2008...... 135 and video industries...... 172 17.2 Inward, domestic and UK co-production 21.1 The workforce ...... 173 features 1992–2008...... 136 21.1.1 Labour Force Survey ...... 173 17.3 Productions by genre, 2006–2008 ...... 140 21.1.2 Skillset’s Labour Market Intelligence...... 176 17.4 Budget trends...... 141 21.2 The feature film production 17.5 Size distribution of budgets...... 142 workforce survey...... 176 17.6 Big-budget productions 2003–2008 ...... 143 21.3 The gender of writers and directors 17.7 UK share of expenditure ...... 143 of UK films...... 179 17.8 UK domestic productions by 21.4 The workplace location...... 180 territory of shoot ...... 143 21.5 The scale of the workplace ...... 181 17.9 UK co-productions by territory of shoot ...... 144 Glossary ...... 186 17.10 Production company activity levels...... 144 17.11 US studios’ involvement in Acknowledgements ...... 188 inward features ...... 145 Sources...... 189

Contents – 3 2008 – the year in review

2008 was a fascinating year for film in the UK. 2008 was an excellent year for UK talent, with major Admissions surged at the end of 2008, boosted by awards going to Daniel Day Lewis (Oscar®, Best Actor, films like High School Musical 3 and Quantum of Solace There Will Be Blood), Tilda Swinton (Oscar®, Best and revenues for film on DVD and television also grew, Supporting Actress, Michael Clayton), Sally Hawkins confirming evidence from earlier recessions that film (Berlin, Best Actress, Happy-Go-Lucky), Steve McQueen revenues are recession-resistant. The box office (awards at Cannes, Toronto and Venice for Hunger) for summer 2008 was the best since 1969, led by and James Marsh (Sundance, two awards for Man The Dark Knight, Hancock and Mamma Mia!, the on Wire). The UK took 32 major awards, 15% of the highest grossing film of all time at the UK box office. top awards presented in the course of the year. The UK box office grew to a record £850 million. UK Both anticipating and reflecting the strong box office films took 31% of the UK box office and internationally performance, the number of cinema screens in the UK UK films accounted for 15% of the global box office. grew by 96, on top of growth in 2006 and 2007, to take The upward trend in the performance of UK film in the the total to 3,610 screens. Among these, 310 screens global market was reflected in the 2007 export figures, were digital, with the UK having the highest number which saw UK film exports reaching a record £1,050 of digital screens in Europe. At the same time, there million. This figure captures the exports of production was massive international growth in digital screens, services and income from royalties, underlining the UK’s particularly in North America, with the global total international competitiveness. rising to 8,797 from only 848 in 2005. In the UK, the top-ranking UK/USA studio films were 2008 was the year in which 3D began to be a force in Mamma Mia!, Quantum of Solace and The Dark Knight, the exhibition sector. 69 UK screens were 3D-capable while the top independent UK films were The Duchess, and this number is expected to rise significantly as the In Bruges and Son of Rambow. The top foreign number of 3D releases goes up. Cinemas are finding language films were The Orphanage (Spanish), they get better screen averages from 3D cinema (more Rab Ne Bana De Jodi (Hindi), Singh Is Kinng (Hindi) people per screen), an effect which also applies to and I’ve Loved You So Long (French). alternative content, such as live streaming of opera and popular music concerts to digital screens, which supports a much higher ticket price.

UK film’s share of the global box office

UK Box Office £850m 4 –UK Film Council Statistical Yearbook 2009 15% Despite falling prices and competition from new media, Regular readers of the Statistical Yearbook will notice the DVD market continued to be strong in 2008, with some additions this year: DVD retail providing the single biggest slice of total •In Chapter 3, a table showing the inflation-adjusted UK film revenues (39%). Both the volume and value top 20 films at the UK box office since 1975. of film on DVD increased from 2006–2008, partly Recent successes such as Mamma Mia! and the compensating for the fall from 2004–2006. Harry Potter films retain their high rankings, but The audience for film on television also increased in alongside these we see popular classics such as 2008 (by 12%) taking the total UK film on television Jaws (1975) at number five, Jurassic Park (1993) audience to 3.5 billion. Film on multi-channel television at number seven, Star Wars (1977) at number 10 showed a particular rise in popularity (+51%). and Grease (1978) at number 13; On average each person in the UK watched 63 films •A new stand-alone chapter on specialised film on TV in the year. (Chapter 5) covering foreign language films, On the other hand, whilst there was an increase in the documentaries and specialised film in general; number of film VoD services, the estimated VoD share •Chapter 10 (Exhibition) has been expanded to include of the total film market was only 3% (including the the results of a 2008 analysis of regional ‘cinema long established pay-per-view services, classified as near- deprivation’ in England; Video on Demand). Although VoD has been successful in television, with the huge audiences for TV catch-up •Information on the numbers and values of officially services, the VoD revolution for film is still in its infancy. qualifying UK films since 1998 (Chapter 16); On the production front, 2008 saw a solid year for •Additional time series have been added to various UK domestic production but a downturn in inward chapters (for example, film audience by age (Chapter investment. The latter was not unexpected as inward 15), the value of the pound (Chapter 17), volume, investment was hit by a combination of the high value value and unit prices of film on DVD (Chapter 11) of the pound and the effects of the actors’ and writers’ giving a deeper overview and a stronger indication industrial disputes in the USA. However, the pound fell of trends. dramatically in value against the dollar in late 2008 and, As always we welcome feedback on the Yearbook. although the ‘credit crunch’ has affected Hollywood film All of the information is available to view online at financing, the signs are that international productions www.ukfilmcouncil.org.uk and for the first time we will return to UK studios in the second half of 2009. have the tables and graphs to download. Co-production activity continued to fall in 2008, David Steele reflecting the impact on co-productions of the new Head of Research and Statistics Unit UK film tax relief, which is proportional to spend in the UK rather than the total budget. Edmond Ng Senior Research Executive On the diversity front, there were two positive indicators in 2008. The share of female screenwriters of UK films Sean Perkins increased to 17% and the share of directors to 12%, Research Executive both substantially above the levels of recent years.

2007 UK film’s export figures £1,050m

2008 – the year in review – 5 Chapter 1: The box office

2008 was a good year at the Facts in focus • UK cinema admissions reached 164 million, UK box office with admissions up 1% on 2007. and receipts both up on last • Box office receipts were £850 million, year. For cinema goers it was up 3.5% on 2007. an excellent year, with a record • Summer admissions of 54 million (June – August) were the highest since 1969. 527 new releases to choose • 527 films were released for a week or more in the UK from, more than one and Republic of Ireland, an increase of 2% on 2007 and in five of them UK films. 34% more than in 1999. • UK films, including co-productions, accounted for 21% of releases and 31% of the market by value, up 2% on last year. • The top 100 films earned over 90% of the gross box office. 1

1.1 Admissions The box office year in the UK was one of two contrasting 3 halves (Table 1.1). January and February admissions The 164.2 million cinema admissions recorded for the UK were down on 2007, but the release of The Spiderwick in 2008 were up 1.1% on 2007 (Figure 1.1), maintaining Chronicles and Step Up 2 boosted admissions over 4 the overall ’plateau’ pattern which has been apparent the Easter holiday period. Super-heroes Iron Man and since the most recent admissions peak in 2002. The Incredible Hulk and comedies What Happened in Admissions in most other European territories were Vegas and Forgetting Sarah Marshall all performed well largely dependent on the number of successful domestic in May and June but overall the box office could not 5 films in the market place – French admissions increased match last year’s May total (when Spider-Man 3 and by 6% (thanks to the huge success of Bienvenue chez the third Pirates of the Caribbean film were released). les Ch’tis ) and there were also increased ticket sales in Two major releases at the end of May boosted the 6 Germany (3%) and Russia (16%). However, Spain (–8%) box office – Sex and the City and Indiana Jones and and Italy (–4%) reported falling ticket sales and there was the Kingdom of the Crystal Skull. July’s admissions a slight fall (–2%) in US admissions to 1.37 billion. were almost at the same level as July 2007’s record 7 total as Mamma Mia!, The Dark Knight and Hancock Figure 1.1 Annual UK admissions, 1999–2008 attracted 21.4 million visitors to UK cinemas. This level Millions of cinema-going was maintained into August with 8 200 20.4 million tickets sold, up 15% on 2007. In fact, the period June-August provided the best summer 150 attendance figures since 1969 with almost 54 million 9 admissions and the hit summer films continued to perform well into September (+11%). High School 100 Musical 3 helped to increase October admissions by 10 7% while the release of Quantum of Solace raised 50 November’s admissions by 41%.

Average weekly admissions ranged from 2.3 million in 11 0 99 00 01 02 03 04 05 06 07 08 April to more than twice as many – 4.8 million – in July Source: CAA, Nielsen EDI. (Table 1.2). 12

Total Table 1.1 Monthly UK cinema admissions, 2007–08 admissions 2007 2008 % +/– Year (millions) Month (millions) (millions) on 2007 13 1999 139.1 January 14.0 13.5 –3.6 2000 142.5 February 13.9 12.9 –7.2 14 2001 155.9 March 11.2 12.2 +8.9 2002 175.9 April 10.9 9.8 –10.2 15 2003 167.3 May 15.7 12.7 –19.1 2004 171.3 June 11.2 11.8 +5.3 16 2005 164.7 July 21.8 21.4 –1.9 2006 156.6 August 17.8 20.4 +14.9 17 2007 162.4 September 9.6 10.7 +10.9 2008 164.2 October 12.2 13.0 +7.3 Source: CAA, Nielsen EDI. November 9.6 13.5 +40.8 18 December 14.6 12.3 –15.5 Total 162.4 164.2 19

Source: CAA, Nielsen EDI.

Image: The Dark Knight courtesy of Warner Brothers Pictures Chapter 1: The box office – 7 21 Table 1.2 Average weekly admissions, 2007–08 1.2 Box office earnings 2007 2008 weekly weekly According to the CAA/Nielsen EDI, the total UK box office average average for 2008 was £850 million, up 3.5% on 2007. This figure Month (millions) (millions) covers all box office earnings during the calendar year January 3.2 3.0 2008 for all films exhibited in the UK. The trends in box office takings from 1999 are shown in Table 1.4 and February 3.5 3.1 indicate 51% growth in the period. March 2.5 2.8 April 2.6 2.3 Table 1.4 UK box office trends, 1999–2008 May 3.6 2.9 Box office gross Cumulative Year (£ million) %+/– % June 2.6 2.8 1999 563 July 4.9 4.8 2000 583 3.6 3.6 August 4.0 4.6 2001 645 10.6 14.6 September 2.2 2.5 2002 755 17.0 34.1 October 2.7 2.9 2003 742 –1.7 31.8 November 2.2 3.2 2004 770 3.8 36.8 December 3.3 2.8 2005 770 0.0 36.8 Source: CAA, Nielsen EDI. 2006 762 –1.0 35.3 Table 1.3 shows how the 2008 admissions break down 2007 821 7.7 45.8 by ISBA TV region, with London accounting for almost 2008 850 3.5 51.0 a quarter of UK admissions (24%). Source: CAA, Nielsen EDI. Table 1.3 Cinema admissions by region, 2008 Admissions 1.3 Film releases and box office revenues Region (million) % In the UK and Republic of Ireland in 2008, 527 films were London 39.8 24.2 released for a week or more, an increase of 2% on 2007 Midlands 23.2 14.1 and 35% on 1999. They generated £934.5 million in Lancashire 18.3 11.2 box office revenues – around the same level as 2007. This figure differs from the £850 million in paragraph Southern 15.3 9.3 1.2 because it includes revenues generated in 2009 by Yorkshire 13.6 8.3 films released in 2008 and covers the Republic of Ireland as well as the UK. Central Scotland 12.0 7.3 As can be seen in Table 1.5, the top 100 films took East of England 10.9 6.6 90% of the box office (a slight fall on 2007’s figure). Wales and West 10.8 6.6 The remaining 427 films (81% of all releases) accounted for just 10% of gross revenues. North East 6.2 3.8 Northern Ireland 5.4 3.3 South West 3.9 2.4 Northern Scotland 3.4 2.1 Border 1.3 0.8 Total 164.2 100.0

Source: CAA, Nielsen EDI.

8 –UK Film Council Statistical Yearbook 2009 1

Table 1.5 Summary of results at the UK and Republic of Ireland box office, 2004–2008 3 2004 2005 2006 2007 2008 Releases 451 467 505 516 527 4 Combined gross £ million 822.0 844.9 845.3 933.8 934.5 Top 20 films (% of box office) 49.4 54.7 48.1 51.2 49.6 5 Top 50 films (% of box office) 75.5 75.7 71.1 75.7 72.4 Top 100 films (% of box office) 92.6 91.5 88.6 91.0 90.3 6 Source: Nielsen EDI, RSU analysis. Note: Table 1.5 and all subsequent analysis of the theatrical market includes all titles released in 2008. The combined gross reflects the territorial gross (that is, including the Republic of Ireland), and includes those titles released in 2008 but also making money into 2009, up to and including 22 February 2009.

7 Figure 1.2 Market share of top 50, top 51–150 Figure 1.3 Gross box office of top 50, top 51–150 and rest of films, 1999–2008 and rest of films, 1999–2008 % £ million 8 100 1,000

80 800 9

60 600 10

40 400

11 20 200

0 99 00 01 02 03 04 05 06 07 08 0 99 00 01 02 03 04 05 06 07 08 12

% share 2 31223 3544 Gross box 11 16 11 16 21 23 25 38 37 32 of rest office of rest 13 % share of 16 17 14 16 20 22 21 24 20 24 Gross box office 98 106 105 132 160 179 182 206 190 226 top 51–150 top 51–150

% share of 82 81 84 82 78 75 76 71 76 72 Gross box office 502 514 628 680 634 622 641 600 707 676 top 50 of top 50 14

Source: Nielsen EDI, RSU analysis. Source: Nielsen EDI, RSU analysis.

Figure 1.2 demonstrates the fall in share of the top 50 Figure 1.3 depicts the increase in box office revenue over 15 films from 84% in 2001 down to 71% in 2006 before the last decade by top films and other films. Note the bouncing back in 2007 due to stronger performances increase in gross box office revenue for films ranked from the major releases. However, the share of the top between 51 and 150 in the 2008 chart. This reinforces 16 50 films decreased again in 2008, despite four films the point made above regarding the weaker position of earning more than £40 million. This suggests a weaker the mid-range blockbusters and the contrasting break- performance from the ’mid-range’ blockbusters and out success of some independent and specialised films, 17 better returns from some of the independent and such as In Bruges, The Bank Job and Son of Rambow. specialised releases. The number of films released in the UK in 2008 by the number of sites at the widest point of release is outlined 18 in Table 1.6. A total of 158 films were released at 100 sites or more (30%), while 207 films were released on fewer than 10 sites (39% of all films released). Six out 19 of ten films released in the UK went out on 49 prints or fewer. 20

Chapter 1: The box office – 9 21 Table 1.6 Number of releases and average box office gross by number of sites at widest point of release, 2008 Number of sites at WPR Number % releases Average box office (£) >500 9 1.7 32,564,000 400-499 34 6.5 8,904,000 300-399 60 11.4 3,797,000 200-299 31 5.9 1,594,000 100-199 24 4.6 851,000 50-99 43 8.2 394,000 10-49 119 22.6 173,000 <10 207 39.3 17,000 Total 527 100.0 1,773,000

Note: average box office rounded to nearest £1,000. Source: Nielsen EDI, RSU analysis.

1.4 Country of origin of film releases As Table 1.7 indicates, of all films released in 2008, 39% (41% in 2007) were of USA origin (excluding UK co-productions), and these films accounted for 65% of the total box office earnings (down from 68% in 2007). UK films, including co-productions, accounted for 21% of releases (the same as 2006 and 2007) and 31% of the box office, out of which UK/USA collaborations earned over 27% of the box office despite representing only 5% of releases. Films whose country of origin lies outside the UK and USA accounted for 40% of releases but only 4% of earnings. European films represented 17% of all releases and 2.3% of revenues. Films from India accounted for 1.4% of the box office from 14% of the releases and films from the rest of the world represented just 0.3% of the box office gross from 9% of releases.

Table 1.7 Country of origin of films released in the UK and Republic of Ireland, 2008 No. of releases % of all 2008 box office 2008 box office Country of origin in 2008 releases (£ million) share (%) USA 204 38.7 609.3 65.2 UK and UK co-productions 82 15.6 30.3 3.2 UK/USA 29 5.5 257.0 27.5 All UK 111 21.1 287.3 30.7 Europe 88 16.7 21.9 2.3 India 76 14.4 13.4 1.4 Rest of the world 48 9.1 2.6 0.3 Total 527 100 934.5 100

Source: Nielsen EDI, RSU analysis. Box office gross = cumulative total up to 2 March 2008.

The changes in market share over time by country of origin of films are shown in Table 1.8. UK market share was the second highest since 2002 and the market share of European films was the highest recorded to date, three times the share recorded in 2002.

10 –UK Film Council Statistical Yearbook 2009 1

Table 1.8 Market share by country of origin, 2002–2008 3 2002 2003 2004 2005 2006 2007 2008 USA 73.4 81.6 73.2 63.1 77.1 67.7 65.2 4 UK 24.4 15.7 23.4 33.0 19.1 28.5 30.7 Europe 0.7 0.9 0.6 1.6 1.2 1.8 2.3 5 India 1.0 1.0 1.1 1.5 1.8 1.6 1.4 Rest of the world 0.5 0.8 1.8 0.8 0.7 0.5 0.3 Total 100 100 100 100 100 100 100 6

Source: UK Film Council RSU.

7 Table 1.9 compares the number of UK films across several gross box office bands with the non-UK output in 2008. The UK is better represented in the over £30 million gross category due to the success of Mamma Mia!, Quantum of Solace and The Dark Knight. However, UK film output compared less favourably with non-UK releases in the £20–29 million band and 56% of UK releases earned less than £100,000. 8

Table 1.9 UK and non-UK releases by box office gross band, 2008 9 Non-UK releases UK releases Box office gross (£ million) Number % releases Number % releases >30 1 0.2 3 2.7 10 20 – 29.99 6 1.4 0 0 10 – 19.99 7 1.7 2 1.8 11 5 – 9.99 24 5.8 6 5.4

1 – 4.99 64 15.4 17 15.3 12 0.5 – 0.99 22 5.3 4 3.6

0.1 – 0.49 79 19.0 17 15.3 13 Less than 0.1 213 51.2 62 55.9

Total 416 100.0 111 100.0 14

Source: Nielsen EDI, RSU analysis.

See also:

•For cinema admissions and box office in 2008 see Chapter 1 (page 6) 18 •For top foreign language films of the last decade see Chapter 5 (page 39)

•For a look at cinema audiences see Chapter 15 (page 114) 19 •For information about film classification in the UK see www.bbfc.org.uk

•For more details of genre classification see www.ukfilmcouncil.org.uk/genre. 20

Chapter 4: Genre and BBFC classification – 31 21 Chapter 5: Specialised films

Specialised films offer Facts in focus • 351 specialised films were released in the UK in 2008 audiences an experience of (67% of the total) earning £77 million (8% of the total cinema that is very different gross box office). from mainly US studio-produced • Films in 31 different languages (including English) were released in the UK in 2008. mainstream films. Such films • 188 foreign language films made up 36% of total may offer an innovative releases, but shared just 3% of the UK box office. cinematic style or engage • Foreign language films averaged 15 sites at the widest point of release, compared to 166 for English with challenging subject matter, language films. or be in foreign languages • Hindi was the most common foreign language in terms and portray experiences from of the number of releases. different cultures around the • 54 documentary films were released, accounting for 10% of releases but only 0.4% of the gross box office. world. Evidence shows the • 28 classic and archive films were re-released (5% of the specialist niche is a vibrant total), accounting for 0.1% of the box office. aspect of our film culture. 1

5.1 Specialised films at the UK box office in 2008 3 The UK Film Council’s definition of ‘specialised’ is broad and relates to those films that do not sit easily within a mainstream and highly commercial genre. Many are from the independent production sector (although they may be handled by a mainstream, studio-based distributor) or are made with a low production budget (compared to a studio 4 production) and may focus more on script and character than on effect and events. They may be expected to appeal to a narrower audience segment than mainstream films. Specifically, the UK Film Council considers most subtitled foreign language films, documentaries and archive/classic 5 films to be ‘specialised’. For films that do not fall into these categories, other criteria are applied and consideration is given to films that are less easy to define as a particular genre or those that deal with challenging and complex subject matter. Specialised films are often characterised as having a more innovative or unconventional storytelling 6 style. For more information on the UK Film Council’s definition of specialised film, and to access the specialised film database, see www.ukfilmcouncil.org.uk/specialisedfilmsdb 7 In total, 351 specialised films were released, representing 67% of the total number of UK theatrical releases last year. These films grossed £77 million, just over 8% of total box office earnings (Table 5.1).

8 Table 5.1 Specialised* films in the UK and Republic of Ireland, 2008 Share of Share of Gross gross box Average 9 Number of releases box office office widest point Type releases (%) (£ million) (%) of release Foreign language 188 36 27.1 2.9 15 10 Documentaries 54 10 3.4 0.4 11 Re-releases 28 5 1.0 0.1 10 11 Other specialised films 90 17 45.7 4.9 54 All specialised films** 351 67 77.0 8.2 25 12 Source: Nielsen EDI data, RSU analysis. *Specialised as identified by the UK Film Council and listed in the Specialised Films Database as at 2 April 2009. For more information visit http://www.ukfilmcouncil.org.uk/specialisedfilmsdb **Note that because of some overlap of categories (eg a film can be categorised as foreign language and as a documentary) the total refers to the number of specialised 13 films, not the sum total of the categories in the table.

Image: The Orphanage courtesy of Optimum Releasing/The Weinstein Company Chapter 5: Specialised films – 33 21 5.2 Foreign language films Films in 31 different languages (including English) were released in the UK and the Republic of Ireland in 2008, compared with 34 in 2007 (Table 5.2).

Table 5.2 Languages of films released, 2008 Main language Number of releases Main language Number of releases Arabic 2 Kurdish 1 Cantonese 5 Lebanese 1 Czech 1 Mandarin 6 Danish 1 Mongolian 1 English 327 Polish 2 English with others* 12 Portuguese 3 Farsi 1 Punjabi 5 French 32 Romanian 2 German 9 Russian 4 Hebrew 3 Spanish 9 Hindi 51 Swedish 1 Hungarian 1 Tamil 18 Icelandic 1 Thai 1 Italian 7 Turkish 5 Japanese 10 Zulu 1

Korean 3 Source: Nielsen EDI, BBFC, IMDb, RSU analysis. *‘English with others’ includes films whose main language was English but with extensive use of other languages, such as Battle for Haditha in English and Arabic.

34 –UK Film Council Statistical Yearbook 2009 1

The 31 foreign languages were spread over 188 releases in the UK (36% of all releases, an increase of 43% since 3 2002), earning £27.1 million at the box office (Table 5.3). This represented 3% of the total UK gross box office for 2008, a fall from 5% in 2004 but higher than in 2003.

4 Table 5.3 Foreign language films at the UK and Republic of Ireland box office, 2002–2008 % of Box office % of total gross Number all releases (£ million) box office 5 2002 131 35.5 17.1 2.2 2003 147 34.7 20.4 2.5 6 2004 169 37.5 38.1 4.6 2005 203 43.5 26.9 3.2 7 2006 171 33.9 29.8 3.5 2007 170 32.9 32.3 3.5 8 2008 188 35.7 27.1 2.9

Source: Nielsen EDI, BBFC, IMDb, RSU analysis. Figures as at 22 February 2009. 9 The percentage of foreign language films released in the UK and the Republic of Ireland returned to the same level as 2002 even though more foreign films were released in 2008 than in 2002 (Figure 5.1). This is explained by the increase in the total number of releases in the UK over the same period (see Chapter 1). 10

Figure 5.1 Foreign language films as a percentage of all films released in the UK and Republic of Ireland, 2002–2008 11 Percentage of all releases 50

12 40

30 13

14 10

0 2002 2003 2004 2005 2006 2007 2008 15 % 35.5 34.7 37.5 43.5 33.9 32.9 35.7

Chapter 5: Specialised films – 35 21 Hindi was once again the most common foreign language in terms of the number of releases (Table 5.4). Taken together, foreign language films played on average at only 15 sites at their widest point of release (against 20 in 2007) compared with an average of 166 for English language releases.

Table 5.4 Language of releases in the UK and Republic of Ireland, 2008 (ranked by number of releases) Average sites Gross at widest Number of % of box office % of gross point Main language releases releases (£ million) box office of release English and English with others* 339 64.3 907.4 97.1 166 Other European 74 14.0 10.2 1.1 12 Other international 63 12.0 4.9 0.5 9 Hindi 51 9.7 12.0 1.3 27 Total 527 100.0 934.5 100.0 112

Source: Nielsen EDI, BBFC, IMDb, RSU analysis. Notes: *‘English with others’ includes films whose main language was English but with extensive use of other languages, such as Battle for Haditha in English and Arabic. Figures as at 22 February 2009. Figures may not sum to totals due to rounding.

Looking at the top five foreign languages, Hindi is in top position, French second and Mandarin in the fifth place (table 5.5) as in 2007. Spanish and Italian took the third and fourth places.

Table 5.5 Top five foreign languages at the UK and Republic of Ireland box office, 2008 Gross Number of box office Main language releases (£ million) Top performing title Hindi 51 12.0 Rab Ne Bana De Jodi French 32 4.6 I’ve Loved You So Long Spanish 9 2.3 The Orphanage Italian 7 1.5 Gomorrah Mandarin 6 1.2 Lust, Caution

Source: Nielsen EDI, BBFC, IMDb, RSU analysis. Figures as at 22 February 2009.

36 –UK Film Council Statistical Yearbook 2009 1

The top three performing European foreign languages were French, Spanish and Italian, (Table 5.6). 3 Portuguese-language films include those of Brazilian origin.

Table 5.6 European foreign languages at the UK and Republic of Ireland box office, 2008 4 Gross Number of box office Main language releases (£ million) Top performing title 5 French 32 4.6 I’ve Loved You So Long Spanish 9 2.3 The Orphanage 6 Italian 7 1.5 Gomorrah German 9 0.8 The Baader-Meinhof Complex 7 Portuguese 3 0.3 Linha de Passe

Romanian 2 0.3 4 Months, 3 Weeks 8 and 2 Days Icelandic 1 0.1 Jar City 9 Swedish 1 0.1 You, the Living Russian 4 <0.1 The Banishment 10 Hungarian 1 <0.1 Children of Glory Danish 1 <0.1 Boss of It All Flemish 1 <0.1 Ben X 11 Polish 2 <0.1 Midnight Talks Czech 1 <0.1 I Served the 12 King of England

Total 74 10.2 13 Source: Nielsen EDI, BBFC, IMDb, RSU analysis. Figures as at 22 February 2009.

Chapter 5: Specialised films – 37 21 While the top foreign language film in 2008 was in Spanish, the top 20 as a whole was dominated by Hindi films, which accounted for 10 titles (Table 5.7).

Table 5.7 Top 20 foreign language films released in the UK and Republic of Ireland, 2008 Gross box office Title Country of origin (£ million) Distributor Main language 1The Orphanage Spa 1.8OptimumSpanish 2Rab Ne Bana De Jodi India 1.5Yash Raj Hindi 3Singh Is Kinng Ind/Aus 1.4Studio 18 Hindi 4I've Loved You So Long Fra 1.2Lions Gate French 5Lust, Caution USA/Chi/Taiwan/HK 1.1UniversalMandarin 6The Diving Bell and the Butterfly Fra/USA 1.0 Pathé French 7Jodhaa Akbar India 1.0 UTV Hindi 8Dostana India 1.0Yash Raj Hindi 9Gomorrah Italy 0.9Optimum Italian 10 Race Ind/Haiti 0.9 UTV Hindi 11 Mongol: The Rise to Power of Genghis Khan Ger/Kaz/Rus 0.8 The Works Mongolian 12 Ghajini India 0.7 Adlabs Hindi 13 Waltz With Bashir Israel/Ger/Fra 0.7 Artificial Eye Hebrew 14 Caramel Leb/Fra 0.5 Momentum Lebanese 15 Priceless Fra 0.5 Icon French 16 The Baader-Meinhof Complex Ger 0.4 Momentum German 17 U, Me Aur Hum India 0.4 Eros Hindi 18 Kidnap Ind/Chi 0.4 Studio 18 Hindi 19 Sarkar Raj India 0.4 Eros Hindi 20 Golmaal Returns India 0.4 Studio 18 Hindi

Source: Nielsen EDI, BBFC, IMDb, RSU analysis. Figures as at 22 February 2009.

38 –UK Film Council Statistical Yearbook 2009 1

This year five of the top 20 foreign language films were supported by the UK Film Council. The five titles (Lust, Caution, 3 The Diving Bell and the Butterfly, Mongol: The Rise to Power of Genghis Khan, Waltz With Bashir, Caramel) received funding to pay for additional prints and advertising, affording greater opportunity for people to see the films.

Table 5.8 shows the 10 biggest foreign language films of the last decade. Top film is Passion of the Christ 4 (£11.1 million), followed by Crouching Tiger, Hidden Dragon (£9.4 million). There are three Mandarin and three Spanish films in the top 20, but only one French language title. 5 Table 5.8 Top 10 foreign language films, 1999–2008 UK box office total Year of 6 Film Language (£ million) UK distributor release 1The Passion of the Christ Aramaic/Latin/Hebrew 11.08 Icon 2004 7 2Crouching Tiger, HiddenDragon Mandarin 9.37Sony Pictures 2001 3Amélie French 5.01Momentum 2001 4Apocalypto Maya 4.11 Icon 2007 8 5Hero Mandarin 3.82 Disney 2004 6HouseofFlying Daggers Mandarin 3.78 Pathé 2004 9 7Life is Beautiful Italian 3.08 Disney 1999

8Volver Spanish 2.88 Pathé 2006 10 9The Motorcycle Diaries Spanish 2.75 Pathé 2004

10 Pan’s Labyrinth Spanish 2.72 Optimum 2006 11

Source: Nielsen EDI, RSU analysis.

12 5.3 Documentaries In all, 54 feature documentaries were released at the UK box office in 2008, representing 10% of theatrical releases. They earned £3.4 million in total, around 0.4% of the overall box office gross. The most successful documentary of the 13 year was Oscar® winner Man on Wire, co-funded and supported on release by the UK Film Council, which earned £879,000. This was followed by two in-concert documentaries, both with 3-D releases – Hannah Montana/Miley Cyrus: Best of Both Worlds earned £799,000 while U2 3D grossed £726,000. Terence Davies’s documentary on 14 Liverpool Of Time and the City earned £245,000. All four documentaries feature in the top 20 theatrically released documentaries in the UK since 2002 (Table 5.9). 15 The highest grossing documentary of all time at the UK box office is Michael Moore’s Fahrenheit 9/11 which earned £6.5 million in 2004. French natural history documentary March of the Penguins is in second place with £3.1 million and British-made Touching the Void is at number three with £2.6 million. 16

Chapter 5: Specialised films – 39 21 Table 5.9 Top 20 documentaries at the UK box office, 2002–2008 Box office Widest point gross of release Title Country of origin Year of release (£) (sites) Distributor 1Fahrenheit 9/11 USA 20046,545,552 200Optimum 2March of the Penguins France 20053,084,616 163Warner Bros 3Touching the Void UK 20032,643,252 50 Pathé 4Bowling for Columbine USA 20021,667,625 37Momentum 5Super Size Me USA 20041,111,093 83 Tartan 6An Inconvenient Truth USA 2006935,770 68Paramount 7Man on Wire UK/USA 2008879,377 43 Icon 8Hannah Montana/Miley Cyrus: Best of Both Worlds USA 2008799,109 65 Disney 9U2 3D USA 2008725,893 67Revolver 10 Etre et Avoir France 2003 708,116 15 Tartan 11 Shine a Light USA/UK 2008 697,320 159 20th Century Fox 12 Spellbound USA 2003 484,540 17 Metrodome 13 Capturing the Friedmans USA 2004 388,238 26 Tartan 14 Sicko USA 2007 378,669 166 Optimum 15 The Corporation Canada 2004 296,234 20 Metrodome 16 Of Time and the City UK 2008 245,189 25 BFI 17 Lost in La Mancha UK/USA 2002 233,383 13 Optimum 18 Grizzly Man USA 2006 220,383 13 Revolver 19 My Architect USA 2004 198,950 12 Tartan 20 The Fog of War USA 2004 178,887 8Sony Pictures

Source: UK Film Council RSU analysis of Nielsen EDI data. Note: The table does not include IMAX-only documentaries and shorts.

An interesting observation is the number of documentaries originating from the USA – a reminder that the USA is not wholly about mainstream Hollywood production but has a large independent and specialised film sector as well.

5.4 Re-releases of classic and archive films According to Nielsen EDI, 28 re-released classic and archive films accounted for 5% of theatrical releases in 2008 but generated 0.1% of the total gross box office. However, not all box office revenues for re-releases are tracked by Nielsen EDI, which primarily focuses on first-run films. Some additional revenue for films which tend to be booked for a limited time into the specialised cinema circuit long after their initial release is missing from this analysis, so the actual box office share is likely to be greater. However, the figures available suggest there is a growing appetite for the theatrical re-release of classic material, fuelled in part by the ageing of the cinema population – the over-45s now account for one-fifth of cinema visits. The availability of enhanced digital versions and the flexibility of digital cinema also give younger audiences the chance to experience the classics for the first time or to see in the cinema films they have previously only seen on television.

40 –UK Film Council Statistical Yearbook 2009 1

Table 5.10 below highlights the top 20 re-releases at UK cinemas over the last six years. Seasonal re-releases take four 3 of the top 10 places, with sizeable audiences for Tim Burton’s The Nightmare Before Christmas 3-D in both 2006 (£647,000) and 2007 (£329,000). It’s a Wonderful Life made an impressive £166,000 from a limited release in the run-up to Christmas 2007 while the British Film Institute’s (BFI) re-release of The Wizard of Oz earned £118,000 the 4 previous year. The Valentine’s Day release of Casablanca made £55,000 in 2007, another strong performance given the width and duration of release.

The highest earning re-release in the UK over the six years is the 20th anniversary re-issue of Steven Spielberg’s E.T. The 5 Extra-Terrestrial. It grossed £2.1 million from a wide release in 2002. The chart features an interesting mix of genres: Ridley Scott’s Alien: The Director’s Cut grossed over £0.5 million in 2003 while Visconti’s The Leopard earned

£347,000 from its limited release in the same year. Bertolucci’s The Conformist was re-released by the BFI earlier in 6 2008 and grossed £111,000 (with an opening weekend average of £4,500). Six of the top 20 were re-released by the BFI, illustrating the importance of the BFI in maintaining and strengthening the UK’s film culture. 7

Table 5.10 Top 20 re-releases at the UK box office, 2002–2008 8 Box office Widest point Year of gross ofrelease Title (year of original release) Country of origin re-release (£) (sites) Distributor 1E.T. (20th anniversary) (1982) USA 20022,063,690 313 UIP 9 2The Nightmare Before Christmas 3-D (1993) USA 2006646,798 5 Disney

3Alien: The Director’s Cut (1979) UK/USA 2003545,782 134 20th 10 Century Fox 4The Leopard (1963) Italy/France 2003346,807 5 BFI 11 5The Nightmare Before Christmas 3-D (1993) USA 2007 328,759 44 Disney 6It’s a Wonderful Life (1946) USA 2007165,707 33Park Circus 12 7Amadeus (Director’s Cut) (1984) USA 2002145,234 8Warner Bros 8The Wizard of Oz (1939) USA 2006118,033 33 BFI 13 9White Christmas (1954) USA 2008117,808 27Park Circus 10 The Conformist (1970) Italy/France/Germany 2008 111,202 6 BFI 11 The Seventh Seal (1957) Sweden 2007 105,594 6 Tartan 14 12 Grease (30th anniversary) (1978) USA 2008 105,241 143 Park Circus 13 Tokyo Story (1953) Japan 2004 95,935 4 Tartan 15 14 Jules et Jim (1962) France 2008 94,673 13 BFI 15 Mughal-E-Azam (1960) India 2005 71,167 14 UTV Comm. 16 16 Let’s Get Lost (1988) USA 2008 58,468 10 Metrodome

17 Donnie Darko: Director’s Cut (2001) USA 2004 55,646 4 Metrodome 17 18 Casablanca (1942) USA 2007 55,453 10 Park Circus

19 Orphée (1950) France 2004 51,506 3 BFI 18 20 Sunset Boulevard (1950) USA 2003 51,231 3 BFI

Source: UK Film Council RSU analysis of Nielsen EDI data. 19 See also:

•For more on the box office see Chapter 1 (page 6) 20 •For more on genre and BBFC classification see Chapter 4 (page 21).

Chapter 5: Specialised films – 41 21 Chapter 6: UK films internationally

In a boom year at the global Facts in focus • Worldwide the gross box office for films of all countries box office, UK films accounted of origin increased by 5% on 2007 to $28 billion. for 15% of the international • The UK share of the global theatrical market increased market. Top performers such to 15% ($4.2 billion) from 12 % in 2007. as Quantum of Solace and •The top 10 performing UK films worldwide grossed $3.4 billion in 2008, up 37% on 2007. Mamma Mia! blazed a trail that •The Dark Knight was the best performing UK qualifying also produced a few surprises. film at the worldwide box office, earning almost $1 billion in 2008. • UK films represented 9% of releases at the North American box office, (10% in 2007), but 16% of the market, (12% in 2007), at a value of $1,571 million. • In Europe the top British film was Mamma Mia! with 34 million admissions, followed by Quantum of Solace with 27 million. •In Latin America, UK films earned 18% of the box office while in Australasia their market share rose to over 22%. 1

6.1 UK films worldwide 3 Record global box office takings were reported in 2008, with $28 billion worth of ticket sales – up 5% on 2007 (Table 6.1). UK films had a 15% share of the global theatrical market in 2008, up from 12% the previous year. This was thanks to the success of several inward investment titles including The Dark Knight, Mamma Mia! and Quantum of 4 Solace. As Table 6.1 shows, the UK’s market share in 2008 was the second highest of the last seven years.

Table 6.1 UK global market share, 2002–2008 5 UK film Global worldwide theatrical gross market UK share 6 Year ($ billion) ($ billion) (%) 2002 1.8 19.8 9.1 2003 1.4 20.1 6.9 7 2004 2.9 24.9 11.5 2005 3.6 23.1 15.5 8 2006 2.2 25.5 8.5

2007 3.3 26.7 12.4 9 2008 4.2 28.1 14.9

Source: MPA, UK Film Council. 10

Based on Variety’s numbers, the top 10 UK films worldwide grossed a total of $3,396 million in 2008 (Table 6.2). The top film was The Dark Knight with a worldwide gross of $997 million. Seven other UK films broke the 11 $100 million barrier at the worldwide box office: Mamma Mia!, Quantum of Solace, The Chronicles of Narnia: Prince Caspian, 10,000 BC, The Golden Compass, Hellboy II: The Golden Army and Made of Honour.

12 Table 6.2 Top 10 UK films worldwide, 2008 Country Worldwide gross Title of origin ($ million) 13 1The Dark Knight UK/USA 997 2Mamma Mia! UK/USA 573 14 3Quantum of Solace UK/USA 546 4The Chronicles of Narnia: Prince Caspian UK/USA 420 15 510,000 BC UK/USA/NZ 270 6The Golden Compass UK/USA 173 16 7Hellboy II: The Golden Army UK/USA/Ger 159 8Made of Honour UK/USA 106 9Atonement UK/USA 80 17 10 The Other Boleyn Girl UK/USA 72 Total top 10 3,396 18

Source: Variety. Note: Variety lists the gross earned in 2008 and includes films released in the previous year. Some films were still being exhibited in 2009, but the additional grosses earned in 2009 are not included in this table. 19

Image: Quantum of Solace courtesy of Metro-Goldwyn-Mayer Chapter 6: UK films internationally – 43 21 6.2 UK films in North America Table 6.3 shows the country of origin of films released in the USA and Canada in 2008. The UK share of the gross box office increased from 12% in 2007 to 16% in 2008, from just 9% of releases (down from 10% in 2007). The total revenue from these films stood at $1,571 million, up 30%. The share of UK films in North America was the highest since our records began in 2002 (Table 6.4), thanks largely to The Dark Knight which was the top-grossing film of the year in the USA and Canada (with $533 million earned to date) and the second-highest grossing film of ’all time’ behind Titanic.

Table 6.3 Country of origin of films in the USA and Canada, 2008 Box office Number % of Box office share Country of origin of releases releases ($ million) (%) UK and UK co-productions (non-USA) 32 5.2 173 1.8 UK/USA 24 3.9 1,398 14.5 Sub-total 56 9.2 1,571 16.3 USA 393 64.4 7,896 81.8 Rest of world 161 26.4 179 1.9 Total 610 100.0 9,647 100.0

Source: Nielsen EDI, RSU analysis.

Table 6.4 UK market share in North America, 2002–2008 UK market share Year % 2002 7.2 2003 5.7 2004 11.0 2005 15.8 2006 9.2 2007 11.8 2008 16.3

Source: Nielsen EDI, RSU analysis.

The Dark Knight was the top performing UK-qualifying film in 2008 in North America, followed by Quantum of Solace with $168 million and Mamma Mia! with $144 million (Table 6.5). Multiple Oscar®-winner Slumdog Millionaire had a limited November opening but, boosted by its awards success, went on to earn over $125 million.

44 –UK Film Council Statistical Yearbook 2009 1

Table 6.5 Top 20 UK films at the USA and Canada box office (including co-productions), 2008 3 Country Box office gross Title of origin ($ million) Distributor

1The Dark Knight UK/USA 533.3 Warner Bros 4 2Quantum of Solace UK/USA 168.4 Sony Pictures

3Mamma Mia! UK/USA 144.1 Universal 5 4Chronicles of Narnia: Prince Caspian UK/USA 141.6 Walt Disney 5Slumdog Millionaire UK 125.3 Fox Searchlight 6 610,000 BC UK/USA/NZ 94.8 Warner Bros 7Hellboy II: The Golden Army UK/USA/Ger 76.0 Universal 7 8The Tale of Despereaux UK/USA 50.9 Universal 9Made of Honour UK/USA 46.0 Sony Pictures 8 10 The Bank Job UK/USA 30.1 Lions Gate 11 The Other Boleyn Girl UK/USA 26.8 Sony Pictures 9 12 Last Chance Harvey UK/USA 14.2 Overture Films 13 The Duchess UK/Fra 13.8 Paramount Vantage 14 Miss Pettigrew Lives for a Day UK/USA 12.3 Focus Features 10 15 Doomsday UK/USA 11.0 Universal 16 Penelope UK/USA 10.0 Summit Ent 11 17 The Boy in the Striped Pyjamas UK/USA 9.0 Miramax 18 City of Ember UK/USA 7.9 20th Century Fox 12 19 In Bruges UK/USA/Bel 7.8 Focus Features

20 Brideshead Revisited UK 6.4 Miramax 13

Source: Nielsen EDI, RSU analysis. Note: Table lists the gross box office for films released in the USA and Canada in 2008 and includes 2009 earnings up to 8 March 2009. 14

Chapter 6: UK films internationally – 45 21 6.3 UK films in Europe The UK’s market share in the major European territories is highlighted in Table 6.6. Almost 20% of German theatrical revenues were earned by UK films, with 18% in Spain and 11% in France. While UK market share increased year-on-year in Germany and Spain it actually declined in France (down from 15% in 2007) due in part to the huge success of local comedy Bienvenue chez les Ch’tis which, with over 20 million admissions, is the most successful French-produced film in France.

Table 6.6 UK market share in selected European territories, 2008 Box office UK share for UK films 2008 Country (€ million) (%) France 19.3m (admissions) 10.7 Germany 148.0 19.6 Spain 107.4 17.5

Source: Nielsen EDI, RSU analysis

The top British film in Europe in 2008 was Mamma Mia! with 34 million admissions, followed by Quantum of Solace with 27 million (Table 6.7). Documentary feature Earth, an edited version of the television series Planet Earth, attracted 3.9 million admissions.

46 –UK Film Council Statistical Yearbook 2009 1

Table 6.7 Top 20 UK films in European countries, 2008 3 European admissions Title Country of origin (million)

1Mamma Mia! UK/USA 33.74 4 2Quantum of Solace UK/USA 27.49

3The Dark Knight UK/USA 24.53 5 4The Chronicles of Narnia: Prince Caspian UK/USA 13.37 510,000 BC UK/USA/NZ 7.51 6 6Sweeney Todd UK/USA 5.17 7Hellboy II: The Golden Army UK/USA/Ger 4.07 7 8Earth UK/Ger/USA 3.90 9The Boy in the Striped Pyjamas UK/USA 2.83 8 10 Made of Honour UK/USA 2.43 11 The Other Boleyn Girl UK/USA 2.37 9 12 The Golden Compass UK/USA 2.00 13 The Bank Job UK/USA 1.93 14 In Bruges UK/USA/Bel 1.89 10 15 The Oxford Murders UK/Fra/Spa 1.88 16 The Duchess UK/Fra 1.77 11 17 Inkheart UK/USA/Ger 1.62 18 Wild Child UK/USA 1.49 12 19 Angus, Thongs and Perfect Snogging UK/USA 1.35

20 Happy-Go-Lucky UK 1.26 13

Source: European Audiovisual Observatory Lumière Database. Data based on admissions from 26 European countries up to and including 7 May 2009. 14

Chapter 6: UK films internationally – 47 21 6.4 UK films in Latin America UK films earned between 15% and 20% of the box office in the Latin American territories for which box office data are available. The Dark Knight, Chronicles of Narnia: Prince Caspian and Quantum of Solace were the major hits in all territories, but there were a few surprises – Death at a Funeral was a major box office success in Argentina, earning more than Mamma Mia! and Quantum of Solace.

Table 6.8 UK market share in selected Latin American countries, 2008 Box office UK share for UK films 2008 Country (US$ million) (%) Argentina 20.6 19.3 Brazil 50.0 15.5 Chile 9.8 19.9 Mexico 76.9 15.8

Source: Nielsen EDI, RSU analysis.

6.5 UK films in Australasia UK releases accounted for 22% of the market in Australia and 26% in New Zealand in 2008. In Australia, The Dark Knight eclipsed Baz Luhrmann’s Australia as the biggest box office hit of the year, while Mamma Mia! was in third place. However, the ABBA musical was the highest grossing film of the year in New Zealand.

Table 6.9 UK market share in Australia and New Zealand, 2008 Box office UK share for UK films 2008 Country (US$ million) (%) Australia 142.1 21.7 New Zealand 23.2 26.2

Source: Nielsen EDI, RSU analysis.

Note: Definition of ‘UK film’

For the purposes of this chapter, a UK film is one which is certified as such by the UK Secretary of State for Culture, Media and Sport under Schedule 1 of the Films Act 1985, via the Cultural Test, under one of the UK’s co-production agreements or the European Convention on Cinematographic Coproduction; a film which has not applied for certification but which is obviously British on the basis of its content, producers, finance and talent; or (in the case of a re-release) a film which met the official definition of a British film prevailing at the time it was made or was generally considered to be British at that time. Most UK films in the analysis (including the major UK/USA films) fall into the first group – films officially certified as British.

See also: •For more information on the UK and global market for filmed entertainment see Chapter 14 (page108) •For more information about the UK film economy see Chapter 20 (page163).

48 –UK Film Council Statistical Yearbook 2009 Image: Man on Wire courtesy of Icon Film Distribution (shot on 16mm film in 1974 by James Ricketson) Chapter 7: UK talent and awards

For a small country, the UK has Facts in focus • Of the top 200 global box office successes of an astonishing creative record 2001–2008, 31 films are based on stories and in the film industry. For the characters created by UK writers. Together they have earned more than $15 billion at the worldwide past eight years, British actors, box office. directors and other film talent • Eight of the top 20 global box office successes of the have been prominent in the last eight years are based on novels by British writers. • More than half of the top 200 films released worldwide global box office charts and since 2001 have featured UK actors in lead or award ceremonies. Story prominent supporting roles. material from UK writers • British directors have directed 20 of the 200 biggest films of the last seven years with Christopher Nolan has continued to inspire the topping the league. industry and audiences alike. • British films and talent won 32 major film awards in 2008. The 205 awards received from 2001–2008 Such talent plays a vital role represented 14% of the total of all major awards. in projecting the UK around the world. 7.1 UK story material The global box office performance of UK films and foreign films which draw on UK source material is a good indicator of the international impact and exposure of British culture. Of the top 200 grossing films released worldwide between 2001 and 2008, 27 are British qualifying films, but UK-originated story material provided the inspiration for 31 – a feat only bettered by US story material. Collectively these 31 films have earned more than $15 billion at the global box office. Novels by British writers have provided the source material for eight of the top 20 grossing films worldwide since 2001 (see www.ukfilmcouncil.org.uk/research for a list of the top 200 films). The top 20 grossing films adapted from stories or characters created by UK writers are listed in Table 7.1. Eighteen are adapted from novels, graphic novels and short stories written by UK authors, one is an original screenplay and another is based on a successful stage production.

Table 7.1 Top 20 grossing films worldwide based on stories and characters created by UK writers, 2001–2008 Country of Gross box office UK story material Rank Title origin ($ million) US distributor (writer) 1The Lord of the Rings: The Return of the King USA/NZ 1,119 New Line Novel by JRR Tolkien 2Harry Potter and the Philosopher’s Stone UK/USA 970 Warner Bros Novel by JK Rowling 3Harry Potter and the Order of the Phoenix UK/USA 937 Warner Bros Novel by JK Rowling 4The Lord of the Rings: The Two Towers USA/NZ 923 New Line Novel by JRR Tolkien 5Harry Potter and the Goblet of Fire UK/USA 896Warner Bros Novel by JK Rowling 6Harry Potter and the Chamber of Secrets UK/USA 879 Warner Bros Novel by JK Rowling 7The Lord of the Rings: The Fellowship of the Ring USA/NZ 868 New Line Novel by JRR Tolkien 8Harry Potter and the Prisoner of Azkaban UK/USA 795 Warner Bros Novel by JK Rowling 9The Chronicles of Narnia: The Lion, the Witch and the Wardrobe USA/NZ 749 Disney Novel by CS Lewis 10 The War of the Worlds USA 596 Paramount Novel by HG Wells 11 Casino Royale UK/USA/Cze 595 Sony Novel by Ian Fleming 12 Mamma Mia! UK/USA 585 Universal Musical book and screenplay by Catherine Johnson 13 Quantum of Solace UK/USA 546 Sony Pictures Based on Ian Fleming novels 14 Charlie and the Chocolate Factory UK/USA 473 Warner Bros Novel by Roald Dahl 15 Die Another Day UK/USA 432 MGM/UA Based on Ian Fleming novels 16 The Chronicles of Narnia: Prince Caspian UK/USA 420 Disney Novel by CS Lewis 17 The Golden Compass UK/USA 365 New Line Novel by Philip Pullman 18 Wanted USA 345 Universal Graphic novel by Mark Millar 19 Bridget Jones: The Edge of Reason UK/USA 261 Universal Novel by Helen Fielding 20 Borat: Cultural Learnings of America USA 259 20th Century Original screenplay by for Make Benefit Glorious Nation Fox Sacha Baron Cohen, Peter Baynham, of Kazakhstan Anthony Hines and Dan Mazer

Source: UK Film Council RSU.

50 –UK Film Council Statistical Yearbook 2009 1

Of the 31 films from the top 200 based on UK stories and characters, the majority (71%) were based on novels by 3 authors such as JRR Tolkien, JK Rowling, CS Lewis, Ian Fleming, Roald Dahl, Helen Fielding, Philip Pullman, HG Wells, Brian Aldiss and Patrick O’Brian (Master and Commander) (Figure 7.1). The international popularity of UK comedy writing was highlighted by the success of original screenplays for Borat: Cultural Learnings of America for Make 4 Benefit Glorious Nation of Kazakhstan, Johnny English, Love Actually, Mr Bean’s Holiday and Wallace & Gromit: The Curse of the Were-Rabbit. Films based on graphic novels by UK writers, such as Wanted, Constantine and The League of Extraordinary Gentlemen, had a major global impact, as did the computer game Tomb Raider in its two film spin-offs. The musical Mamma Mia! started life as a UK stage production in 1999, with the songs of ABBA 5 woven into a story written by British playwright Catherine Johnson. The 2008 film release was one of the highest grossing of the year, earning $585 million worldwide. 6 Figure 7.1 Origin of UK story material in the top 200 films at the international box office, 2001–2008 % 7 Novel 71% Original screenplay 13%

Comic book/graphic novel 10% 8 Computer game 3% Musical 3% 9

7.2 UK actors 10 UK acting talent is widely recognised as being among the best in the world and more than half (108) of the top 200 films at the international box office since 2001 have featured British actors in either lead/title roles (29) or in the supporting cast (79). The prominent role played by UK actors in many of the major blockbusters of the last decade is 11 reflected in Figure 7.2 which shows the top 12 British actors based on appearances in the 200 highest-grossing films released globally since 2001. Orlando Bloom, Ian McKellen and Christopher Lee have featured in some of the biggest franchises in cinema history such as Lord of the Rings, Pirates of the Caribbean, X-Men and the Star Wars prequels. 12 New entries this year include Michael Caine (thanks largely to his role as Alfred in The Dark Knight), Daniel Craig (Bond and The Golden Compass) and Colin Firth, who played a supporting role in the highest grossing UK box office hit of all-time, Mamma Mia! 13

Figure 7.2 Top 12 UK actors featured in the top 200 films at the worldwide box office, 2001–2008 (number of appearances in brackets) 14 Total gross box office ($ billion) 7.00 15 6.00

5.00

16 4.00

3.00

2.00 17

1.00

0 18

Brian Cox (5) Colin Firth (4) DanielEmma Radcliffe/Rupert Watson/ Grint (5) Daniel Craig (4) Ian McKellen (6) Timothy Spall (6) Michael Caine (4) Orlando Bloom (8) Christopher Lee (5) Keira Knightley (5) 19 Total gross 6.30 4.88 4.53 4.483.13 2.89 1.87 1.76 1.64 1.35 box office ($ billion) 20 Source: UK Film Council RSU. Criteria: based on four or more appearances, either in lead/title role or supporting role. Chapter 7: UK talent and awards – 51 21 7.3 UK directors Twenty of the 200 highest grossing films at the worldwide box office have been directed by British directors (Figure 7.3 and Table 7.2.) Christopher Nolan has had the most commercial success in recent years, thanks to Batman Begins and The Dark Knight. The two British directors of the decade’s top British franchise follow in second and third place – David Yates directed Harry Potter and the Order of the Phoenix, which has earned $937 million to date, followed by Mike Newell who directed Harry Potter and the Goblet of Fire. Ridley Scott was the most prolific, with three films (Kingdom of Heaven, Hannibal and American Gangster) in the top 200, grossing over $826 million between them. The success of The Bourne Supremacy and The Bourne Ultimatum ensure that Paul Greengrass features twice in the top 200 list, with a combined gross of $731 million. Three women feature in the top 200 list – Sharon Maguire and Beeban Kidron – for Bridget Jones’s Diary and Bridget Jones: The Edge of Reason respectively and also this year Phyllida Lloyd, who made the transition from West End stage to film with her debut feature, Mamma Mia!

Table 7.2 UK directors from the top 200 films at the global box office, 2001–2008 and their films Total gross box office Director Film(s) ($ million) Christopher Nolan Batman Begins, The Dark Knight 1,370 David Yates Harry Potter and the Order of the Phoenix 937 Mike Newell Harry Potter and the Goblet of Fire 896 Ridley Scott American Gangster, Hannibal, Kingdom of Heaven 826 Paul Greengrass The Bourne Supremacy, The Bourne Ultimatum 731 Phyllida Lloyd Mamma Mia! 585 Beeban Kidron Bridget Jones: The Edge of Reason 261 Sharon Maguire Bridget Jones’s Diary 254 Simon West Lara Croft: Tomb Raider 251 Richard Curtis Love Actually 245 Steve Bendelack Mr Bean’s Holiday 228 Tom Vaughan What Happens in Vegas 219 Peter Hewitt Garfield 200 Steve Box and Nick Park Wallace & Gromit: The Curse of the Were-Rabbit 186 Tony Scott Déjà Vu 181 Stephen Norrington The League of Extraordinary Gentlemen 180

Source: UK Film Council RSU.

52 –UK Film Council Statistical Yearbook 2009 1

Figure 7.3 Top 10 UK directors based on top 200 grossing films, 2001–2008 3 (number of films in brackets) Gross box office ($ million) 1,600 4

1,200 5

800

400

7 0

ire (1)

8 David Yates (1) Mike Newell (1) Ridley Scott (3) Simon West (1) Phyllida Lloyd (1) Beeban Kidron (1) Richard Curtis (1) Paul Greengrass (2) Sharon Magu Christopher Nolan (2)

Gross 1,370 937 896 826731 585 261 254 252 245 box office 9 ($ billion)

7.4 Awards for UK films 2001–2008 10 UK films and British talent in front of and behind the camera have enjoyed major award recognition since 2001.

Table 7.3 illustrates the number of awards won by UK films and individuals at two major international award 11 ceremonies (Academy Awards®, BAFTA Film Awards) and the major international film festivals (Berlin, Cannes, Sundance, Toronto and Venice). In all, there were 205 award winners, representing 14% of the awards made.

12 Table 7.3 Awards for British films and talent, 2001–2008 Year Number of UK award winners* UK share % 13 2001 25 14 2002 24 15 2003 22 13 14 2004 22 13 2005 23 14 15 2006 25 14

2007 32 15 16 2008 32 15

*Awards include Academy Awards® and BAFTA Film Awards, and Berlin, Cannes, Sundance, Toronto and Venice festivals. 17 Source: UK Film Council.

UK films and talent won 32 major academy and festival awards in 2008, 15% of the total number conferred (Table 7.4). Daniel Day-Lewis and Tilda Swinton both picked up Academy® and BAFTA awards for the respective 18 leading and supporting roles in There Will Be Blood and Michael Clayton. Oscars® also went to The Golden Compass for costume design and visual effects, while La Vie en Rose was honoured for its make-up and Suzie Templeton and Hugh Welchman won the Best Animated Short Film Oscar® for Peter and the Wolf. Steve McQueen picked up awards 19 for his debut film, Hunger, at the Cannes, Toronto and Venice Film Festivals. The documentary Man on Wire picked up two awards at the Sundance Film Festival and its 2009 Oscar® will be reported in the 2010 Statistical Yearbook, as did Simon Ellis for his short film, Soft. 20

Chapter 7: UK talent and awards – 53 21 Table 7.4 UK award winners, 2008 Award ceremony/festival Award Recipient Title Academy Awards® Best Performance by an Actor in a Leading Role Daniel Day-Lewis There Will Be Blood 24 February 2008 Best Performance by an Actress in a Supporting Role Tilda Swinton Michael Clayton Best Costume Design Alexandra Byrne The Golden Age Best Achievement in Make-up Jan Archibald and Didier Lavergne La Vie en Rose Best Achievement in Visual Effects Ben Morris, Trevor Wood, Michael L Fink, The Golden Compass Bill Westenhofer Best Short Film, Animated Suzie Templeton and Hugh Welchman Peter and the Wolf BAFTA Film Awards Best Film Atonement 10 February 2008 The Alexander Korda Award for Outstanding This is England British Film of the Year Actor in a Leading Role Daniel Day-Lewis There Will Be Blood Actress in a Supporting Role Tilda Swinton Michael Clayton Adapted Screenplay Ronald Harwood The Diving Bell and the Butterfly Cinematography Roger Deakins No Country for Old Men Costume Design Marit Allen La Vie en Rose Make-up and Hair Jan Archibald, Didier Lavergne La Vie en Rose Achievement in Film Music Christopher Gunning La Vie en Rose Production Design Sarah Greenwood and Katie Spencer Atonement Achievement in Special Visual Effects Michael L Fink, Bill Westenhofer, The Golden Compass Ben Morris, Trevor Wood Short Animation Film Jo Allen, Luis Cook The Pearce Sisters Short Film Diarmid Scrimshaw, Paddy Considine Dog Altogether The Carl Foreman Award for Special Achievement Matt Greenhalgh Control by a British Director, Writer or Producer in their first feature film Academy Fellowship Anthony Hopkins Berlin International Best Actress Sally Hawkins Happy-Go-Lucky Film Festival 7–17 February 2008 Outstanding Artist Contribution Jonny Greenwood There Will Be Blood Special Mention – Best Short Film David O’Reilly RGB XYZ Prize of the Ecumenical Jury John Crowley Boy A Cannes Film Festival Golden Camera Winner Steve McQueen Hunger 14–25 May 2008 Sundance Film Festival Grand Jury Prize – World Cinema – Documentary James Marsh Man on Wire 17–27 January 2008 Audience Award – World Cinema – Documentary James Marsh Man on Wire Short Filmmaking – International Simon Ellis Soft Toronto International People’s Choice Award Danny Boyle Slumdog Millionaire Film Festival 4–13 September 2008 Discovery Award Steve McQueen Hunger Venice Film Festival Gucci Prize Steve McQueen Hunger 27 August – 6 September 2008

Source: UK Film Council.

See also: •For more details on the film distribution sector in 2008 see Chapter 9 (page 68) •For more information about the exhibition sector in 2008 see Chapter 10 (page 73) •For more background on film production in 2008 see Chapter 17 (page 134).

54 –UK Film Council Statistical Yearbook 2009 Image: Son of Rambow courtesy of Optimum Releasing Chapter 8: Theatrical release history and comparative performance of UK films

A film that performs well Facts in focus • Just under half (44%) of UK films shot between 2003 in the cinema has distinct and 2006 were released in the UK and the Republic advantages in earnings of Ireland within two years of principal photography. They accounted for 71% of the total UK film and promotion. However, production budget over this period. competition for the available • 62% of UK films shot between 2003 and 2006 were slots is fierce. This chapter released in at least one of 12 international territories within two years of principal photography, accounting looks at the release history for 83% of the total film production budget. and box office performance • 100% UK national films generally performed better internationally than unofficial and official UK co- of four types of UK films in productions made at the same budget level, suggesting recent years. that the value in setting films up as co-productions comes from enabling them to be made at higher budget levels on average than if they were set up as purely national films. • UK films managed to exploit 23% of the international release opportunities within two years of principal photography. 8.1 Theatrical release of UK films This chapter reports the theatrical release performance of UK films in the UK and internationally. Knowing how well the different categories of UK film have performed is important for understanding the film market and for making public policy. It should be borne in mind that the number of effective theatrical release slots each year is tightly constrained, there being only 52 weekends per year. Films can also be released on DVD/video, shown on terrestrial or multi-channel television, or downloaded or streamed over different digital platforms.

8.2 UK films defined UK films are defined as films that qualified as British under the Films Act 1985 (including official co-productions) or were capable of qualifying under the rules applicable in the year in question, even if they chose not to. See Chapter 16 (Section 16.1) for more on British film certification. The films covered by the analysis are feature films produced wholly or partly in the UK with budgets of £500,000 or over; this budget limit is the threshold budget level for the production statistics published in Chapter 17 of this Yearbook. The following analysis compares four types of UK production:

Type of production Definition 100% UK national A British film made by a UK production company without the financial involvement of a US studio or its subsidiary in the UK or other overseas partner. Official UK co-production A UK co-production certified as British under one of the UK’s official bilateral (excluding USA) treaties or the European Convention on Cinematic Co-production, excluding those which involved a US studio or its UK subsidiary in its financing. Co-productions with interim as well as final certification are included. Unofficial UK co-production A UK film made in collaboration with partners from other countries, excluding (excluding USA) the USA, but not certified as an official co-production. (Note: unofficial co-productions between the UK and India are excluded because we do not have data for the Indian box office.) UK/USA A UK/USA film is a UK film made in whole or part in the UK with partners from the USA. These are often high-budget Schedule 1 and official co-production films made with the US majors, but there are a number of UK/USA independent films as well. (Note: on occasion UK/USA films involve additional third or fourth countries.)

These categories of UK films have different characteristics. For example, UK/USA films typically have higher budgets and US studio distribution, which makes them more likely to achieve theatrical release and high box office results. The reference period is the production years 2003 to 2006. Production year is defined as the year in which principal photography (PP) begins. We restrict our analysis to these years because comprehensive production tracking data are only available from 2003 and it may take a number of years for a film to be theatrically released, as Figure 8.1 shows. The theatrical release territories included in this analysis are: USA and Canada (counted as one territory), UK and Republic of Ireland (one territory), France, Spain, Germany, Austria, Brazil, Argentina, Chile, Mexico, Australia and New Zealand. These 12 territories are covered because they account for the majority (63% in 2008, according to Screen Digest Cinema Intelligence) of the world theatrical market and title-matched box office and production data for these territories are available. Figure 8.1 shows the time taken from principal photography to first release in one of the above 12 territories for 280 UK films shot in 2003 and 2004. Two-thirds of these films were released within two years, but a significant minority (10%) took longer than two years to get a first theatrical release. This means that the proportion of released films tends to fall the closer we come to the present day. For this reason, analysis is limited to films shot up to the end of 2006 and ‘release’ is defined as films released within two years of principal photography. This will underestimate the final release rate by about 10%, but provides a common measure for comparing films produced in different years.

56 –UK Film Council Statistical Yearbook 2009 1

Figure 8.1 Elapsed time from principal photography to first international release of UK films shot in 2003 and 2004 3 % of all films produced 60.0

4 50.0

40.0 5 30.0

20.0 6

10.0

0 7 <1

1 to <2 2 to <3 3 to <4 Un-released Elapsed years from PP to first release 8 % of 10.7 55.4 10.0 0.4 23.6 all films produced 9 Source: Nielsen EDI, UK Film Council. Notes: Release rates up to 8 February 2009. Here ‘international’ release means a release in any of 12 Nielsen EDI territories, including the UK.

10 8.3 Release rate of UK films in the UK and Ireland Out of 535 UK films (all production types) shot between 2003 and 2006, 236 (44%) were theatrically released in the UK and the Republic of Ireland within two years of principal photography (Table 8.1). The release rates hovered 11 around the average of 44% over this period. Films produced in 2005 had a lower release rate (41%) while those made in 2006 had the highest release rate of 47%. The overall release rate would have been 53% without the two year follow-up limit (see Section 8.1). 12 Table 8.1 also shows that released films tend to have higher budgets than the unreleased ones. The median budget of the released films over this period was £5 million which is 1.5 times the median for the unreleased films. Films that had a theatrical release accounted for 71% of the total film budget over this period. The lower rate of 55% in 2005 13 coincided with the fall in UK spend on inward investment films of that year, as shown in Figure 17.2. Fewer high- budget inward investment franchise films were shot in 2005, for example, no Harry Potter or Bond films were shot that year. 14

Table 8.1 UK films released in the UK and Ireland by production years, 2003–2006 15 2003 2004 2005 2006 Total Number released within two years of principal photography 66 58 53 59 236 16 % released within two years of principal photography 42.3% 46.8% 40.8% 47.2% 44.1% Number of films produced 156 124 130 125 535 Median budget of released films (£ million) 5.7 6.3 4.0 4.7 5.0 17 Median budget of un-released films (£ million) 3.5 3.5 4.2 2.7 3.4 Median budget of all films (£ million) 4.4 4.4 4.2 3.3 4.2 18 Released films’ % of total budget 70.8% 76.9% 55.4% 77.3% 71.2%

Source: Nielsen EDI, DCMS, UK Film Council. 19 Notes: In this and all other tables and figures in this chapter, ‘Ireland’ means Republic of Ireland. Release rates subject to two year release limit (see Section 8.2). A film is considered to be theatrically released if it was recorded as such by Nielsen EDI.

Chapter 8: Theatrical release history and comparative performance of UK films – 57 21 8.4 Release rate of four types of UK production in the UK and Ireland Table 8.2 shows that over the reference period UK/USA films were most likely to be theatrically released in the UK and Ireland within two years of principal photography (77% of all UK/USA films). They were followed by unofficial co-productions at 58%, UK national films (54%) and official UK co-productions (26%).

Table 8.2 Release rate of UK films in the UK and Ireland by type of production, production years, 2003–2006 Official Unofficial 100% co-productions co-productions UK national (excluding USA) (excluding USA) UK/USA Total No. released within two years of principal photography 72 71 7 86 236 % released 53.7% 25.6% 58.3% 76.8% 44.1% No. of films produced 134 277 12 112 535 Median budget of released films (£million) 2.1 4.5 3.6 17.6 5.0

Source: Nielsen EDI, DCMS, UK Film Council. Notes: See notes to Table 8.1.

8.5 Box office performance of four types of UK production in the UK and Ireland Of the 236 UK films shot between 2003 and 2006 that had a theatrical release in the UK and Ireland within two years of principal photography, UK/USA films were the highest earners of the four types of UK productions with a median box office of £4.6 million. They were followed by unofficial co-productions at £612,000, 100% UK national films (£174,000) and official UK co-productions (£114,000).

Table 8.3 Box office performance of four types of UK production in the UK and Ireland, production years, 2003–2006 (ranked by median box office) Median Mean Number of (£000) (£000) films produced UK/USA 4,582 8,745 86 Unofficial co-production (excluding USA) 612 902 7 100% UK national 174 682 72 Official co-production (excluding USA) 114 824 71 Total 628 3,670 236

Source: Nielsen EDI, DCMS, UK Film Council. Notes: Figures shown are of UK films released in the UK and Ireland within two years of principal photography (see Section 8.2). Box office figures valid to 8 February 2009. The median (the value at which equal numbers of films have higher and lower box office values) is a better representation of the ‘middle’ of the distribution of box office revenues than the mean which tends to have an upward skew due to a small number of high box office films. Means are also shown in the table for reference.

58 –UK Film Council Statistical Yearbook 2009 1

8.6 International release rate of UK films (12 territories) 3 Table 8.4 shows that 62% of all UK films shot over the years of 2003 to 2006 were theatrically released in one or more of 12 territories within two years from principal photography. The international release rate fell from 66% in 2003 to 56% in 2006. This coincided with a sharp fall in median budgets of UK films from £4.4 million to £3.3 million over the 4 same period. While the median budget of released films was roughly stable, the median budget of the unreleased films fell by 23% (from £3.5 million to £2.7 million). Overall, internationally-released UK films accounted for 83% of the total film budget (Table 8.4). This, together with 5 Table 8.1 provides some reassurance that a high proportion of the total UK film budget and associated tax relief are devoted to films that gain a theatrical release. 6

Table 8.4 International release of UK films, production years, 2003–2006

2003 2004 2005 2006 Total 7 Number released within two years of principal photography 103 81 79 70 333

% released within two years of principal photography 66.0% 65.3% 60.8% 56.0% 62.2% 8 Number of films produced 156 124 130 125 535 Median budget of released films (£ million) 5.0 5.6 4.6 4.8 5.0 9 Median budget of unreleased films (£ million) 3.5 3.4 3.2 2.7 3.0 Median budget of films (£ million) 4.4 4.4 4.2 3.3 4.2 10 Released films’ % of total budget 84.3% 87.1% 74.8% 82.4% 82.9%

Source: Nielsen EDI, DCMS, UK Film Council. Notes: Release rates are calculated two years after principal photography (see Section 8.2). A film is ‘internationally released’ if it was recorded as such in any one of the 11 12 Nielsen EDI territories monitored (see 8.2 for the list).

8.7 International release rate of four types of UK production 12 Table 8.5 shows that UK/USA films were again found to have the highest international release rate (86%) among the four types of UK production over the reference period. They were followed by unofficial UK co-productions 13 (67%), UK national films (58%) and official UK co-productions (55%). It is somewhat surprising to see that official UK co-productions fared slightly worse than 100% UK national films. This could partly be due to the limitation of UK Film Council data coverage. For example, the Romanian theatrical release of an official UK co-production made with 14 Romania under the European Convention would not have been captured in UK Film Council box office data.

Table 8.5 International release of UK films by type of production, production years, 2003–2006 15 Official Unofficial 100% co-productions co-productions UK national (excluding USA) (excluding USA) UK/USA Total 16 No. released within two years of principal photography 77 152 8 96 333 % released 57.5% 54.9% 66.7% 85.7% 62.2% 17 No. of films produced 134 277 12 112 535 Median budget of released films (£ million) 2.2 4.5 3.8 15.5 5.0 18 Source: Nielsen EDI, DCMS, UK Film Council. Notes: See notes to Table 8.4.

Chapter 8: Theatrical release history and comparative performance of UK films – 59 21 Further investigation reveals that 50 of the 125 unreleased official UK co-productions involved exclusively co-producing partner countries that are not part of the Nielsen EDI coverage. Romania (12 films), Luxembourg and The Netherlands (seven each), Italy and Denmark (six each) were the most common co-producing countries involved in five or more of the 50 unreleased films. Lumiere, a searchable cinema admission database for films released in Europe hosted by the European Audiovisual Observatory, gives the European release history of films unreleased in the Nielsen territories on a title by title basis. According to Lumiere, the 12 UK/Romania films were not theatrically released in any European country. Two of the seven UK/Luxembourg co-productions were released in Belgium and the Netherlands within two years of principal photography; three of the six UK/Italy co-productions were released in Denmark and Italy. If half of the 50 official co-productions unreleased in Nielsen territories were released in other European territories, the release rate for official co-productions could have increased to 64%. However, release rates for other UK films might also have increased if other international release territories were included in the analysis.

8.8 International box office performance of four types of UK production UK/USA films were the highest earners with a median international box office of US$38 million as Table 8.6 shows. They were followed by unofficial co-productions (US$2.3 million), official UK co-productions (US$1.1 million) and 100% UK national films (US$533,000). Note that the box office data cover only 12 international territories (including the UK). The global median box office for UK films would be higher than the figures presented here.

Table 8.6 Box office (US$) for UK films released in at least one of 12 territories by type of production, production years, 2003–2006 (ordered by median box office) Median Mean Number of (US$000) (US$000) films released UK/USA 38,181 84,105 96 Unofficial co-productions (excluding USA) 2,265 3,779 8 Official co-productions (excluding USA) 1,118 4,857 152 100% UK national 533 3,314 77 Total 2,166 27,321 333

Source: Nielsen EDI, DCMS, UK Film Council. Notes: Figures shown are for UK films released in at least one of 12 Nielsen EDI territories within two years of principal photography (see Section 8.2). Box office figures valid to 8 February 2009.

60 –UK Film Council Statistical Yearbook 2009 1

8.9 Comparative box office performance while controlling for film budget 3 Tables 8.3 and 8.6 show the relative box office performance of the four types of UK film released locally and internationally. UK/USA films, benefiting from their association with US majors and the majors’ extensive distribution networks, outperformed other types of UK productions by large margins. However, the four types of UK production 4 are made at substantially different budget levels. For example, the median budget of UK/USA films released in the UK and Ireland was £17.6 million compared with just £2.1 million for 100% UK national films. It is interesting to compare the different types of UK production on a level playing field by controlling for budget in a 5 regression analysis. Figure 8.2 shows a scatter plot of UK and Ireland box office by budget for each of the four types of UK film. The four fitted lines show the box office to budget relationship for each type. The vertical difference between the fitted lines shows the difference in box office performance for each type of film at each given budget level. 6

Figure 8.2 UK and Ireland box office by budget for four types of UK production, production years, 2003–2006 7 UK/Ireland box office (GBP '000) 50,000

8 10,000

9 1,000

10 100

11 10

12 1

1 2.5 5 10 25 50 100 200 13 Budget (£ million)

UK/Ireland box office Fitted values 100% UK national 100% UK national Official UK co-pro (excl USA) Official UK co-pro (excl USA) 14 Unofficial UK co-pro (excl USA) Unofficial UK co-pro (excl USA) UK/USA UK/USA

Source: Nielsen EDI, DCMS, UKFC 15 Notes: The data displayed are for UK films released in the UK and Ireland within two years of principal photography (see Section 8.2). Box office valid to 8 February 2009. The plot is shown in log scale on both axes. Lines shown in the plot are fitted values given by the regression model. The lines are extended to the observed lowest and highest budget values of their respective production type. Log-transformation was applied to international box office and budget prior to modelling. 16

The regression analysis shows that the effect of film budget on box office is different for different types of UK production. For example, the steepest regression line for unofficial co-productions implies that unofficial 17 co-productions had, on average, the highest increase in box office revenue per unit increase in budget than other UK films. The effect of controlling for budget is best explained by looking at the ‘average’ box office (fitted value) at different 18 budget levels, as demonstrated in Table 8.7.

Chapter 8: Theatrical release history and comparative performance of UK films – 61 21 Under the regression model, at a budget level of £5 million, unofficial co-productions had an average UK box office of £1.4 million, followed by UK/USA films (£834,000), 100% UK national films (£631,000) and official co-productions (£152,000). What this analysis shows is that at these budget levels, UK national films and/or unofficial co-productions outperform UK/USA films in the UK theatrical market. However, this argument must not be extended to budget levels that are atypical of the respective production types. For example, it would be misleading to compare unofficial co-productions against 100% national UK films at a budget level of £10 million because there are no unofficial co-productions at this budget level in our data. The regression lines displayed in the figure extend only within the budget ranges of their respective type of production in the dataset. At high budget levels (£50 million+) UK/USA films were the only type of UK film.

Table 8.7 Average (fitted value) UK and Ireland box office (£000) by type of UK production at three illustrative budget levels, production years 2003–2006 (ranked by box office at £5 million budget) Illustrative budget level £2.5m £5m £10m Average (fitted value) box office (£000) Unofficial UK co-productions (excluding USA) 249 1,405 * UK/USA 422 834 1,651 100% UK national 185 631 2,154 Official UK co-productions (excluding USA) 82 152 279

Source: Nielsen EDI, DCMS, UKFC. Notes: See notes to Figure 8.2. *At the £10 million budget level, average (fitted value) box office is not calculated for unofficial co-productions because no unofficial co-production was made at this budget level in our data. The average (fitted value) box office is calculated by back-transforming the fitted value from the regression of log-transformed box office on log-transformed budget at a given budget level. The back-transformed value is essentially a geometric mean which is closer to the median in the original scale than the mean for a skewed distribution.

Figure 8.3 shows the total box office of 100% UK films released internationally by budget with estimated ‘average’ box office. The regression line for UK national films is the steepest. This means that, within their typical budget range, the average increase in international box office is higher for 100% national UK films per unit increase in budget than other production types.

62 –UK Film Council Statistical Yearbook 2009 1

Figure 8.3 International box office across 12 territories, by budget for four types of UK production, 3 production years, 2003–2006 International box office (USD '000) 500,000 4

50,000 5

5,000 6

500 7

9 1 2.5 5 10 25 50 100 200 Budget (£ million)

International box office Fitted values 10 100% UK national 100% UK national Official UK co-pro (excl USA) Official UK co-pro (excl USA) Unofficial UK co-pro (excl USA) Unofficial UK co-pro (excl USA) UK/USA UK/USA 11

Source: Nielsen EDI, DCMS, UK Film Council. Notes: The data displayed are for UK films released in at least one of 12 Nielsen EDI territories monitored, within two years of principal photography (see Section 8.2). Box office valid to 8 February 2009. See also notes 2 and 3 to Figure 8.2. 12

Table 8.8 shows the average (fitted value) box office calculated at three budget levels. At the £5 million budget level, UK/USA films did best at US$4.8 million, followed by 100% UK national films (US$2.5 million), unofficial 13 co-productions (US$2.2 million) and official UK co-productions (US$1.0 million). The ranked order remained unchanged for the four types of UK productions at the £10 million budget level. At the lower end of the budget range, for example £2.5 million, unofficial co-productions performed better than UK national films and official UK co-productions. Official UK co-productions underperformed the other three production types at any given budget 14 level of £1.5 million or over. What this suggests is that the higher box office of official co-productions (Table 8.6) is a function of their higher average budgets, that is the value added by setting films up as co-productions comes from enabling them to be made at higher budget levels (on average) than purely national films. 15

Table 8.8 Average (fitted value) 12 territory box office (US$000) by type of UK production at three illustrative 16 budget levels, production years 2003–2006 (ranked by box office at £5 million budget) Illustrative budget level £2.5m £5m £10m Average (fitted value) box office ($000) 17 UK/USA 1,928 4,773 11,815

100% UK national 632 2,499 9,870 18 Unofficial UK co-productions (excluding USA) 825 2,172 5,718

Official UK co-productions (excluding USA) 395 1,037 2,724 19

Source: Nielsen EDI, DCMS, UK Film Council. Notes: see notes to Table 8.7. 20

Chapter 8: Theatrical release history and comparative performance of UK films – 63 21 8.10 Release opportunities analysis UK films are screened in cinemas across the globe. One way to compare their global reach is to look at how well these films are circulated in international territories. The higher the proportion of territories a film is able to reach, the larger its potential international audience. Here we calculate the number of release opportunities exploited by UK films for the production years 2003 to 2006. The maximum number of release opportunities for any film is 12 in our analysis because our box office data cover 12 international territories, including the UK. The total number of release opportunities is simply the total number of films multiplied by 12. Table 8.9 shows that UK films were able to exploit 23% of the release opportunities within two years from principal photography. The exploitation rates hover about the average over the reference period. Without the two year release limit (see Section 8.2), the overall exploitation rate would have been 31%.

Table 8.9 Proportion of release opportunities exploited by UK films by year of production, 2003–2006 2003 2004 2005 2006 Total No. of films produced 156 124 130 125 535 Total no. of release opportunities in 12 territories 1,872 1,488 1,560 1,500 6,420 Release opportunities exploited within two years of principal photography 437 366 337 359 1,499 % of opportunities exploited 23.3% 24.6% 21.6% 23.9% 23.3%

Source: Nielsen EDI, UK Film Council. Notes: See notes to Table 8.4. Territories in which a film was released more than two years after principal photography are not counted in the calculation above.

It is not surprising to see from Table 8.10 that UK/USA films, benefiting from extensive international theatrical distribution networks, were the most successful type of UK production, exploiting 61% of international release opportunities available (72% without the two-year limit). They were followed by unofficial co-productions (26%), official UK co-productions (13%) and 100% UK national films (13%).

Table 8.10 Release opportunities exploited by four types of UK production, production years, 2003–2006 Official Unofficial 100% co-productions co-productions UK national (excluding USA) (excluding USA) UK/USA Total No. of films produced 2003–2006 134 277 12 112 535 Total release opportunities in 12 territories 1,608 3,324 144 1,344 6,420 Release opportunities exploited 205 435 38 821 1,499 % of opportunities exploited 12.7% 13.1% 26.4% 61.1% 23.3%

Source: Nielsen EDI, DCMS, UK Film Council. Notes: See notes to Table 8.9. Without the two year limit, the exploitation rate would have been 71.7% for UK/USA films, 34.7% for unofficial co-productions, 21.0% for official UK co-productions and 18.8% for 100% UK national films.

64 –UK Film Council Statistical Yearbook 2009 1

8.11 Local and overseas share of box office of UK films 3 Figure 8.4 shows that overall 18% of the international box office for UK films (from 12 Nielsen EDI territories) came from the local (UK and Ireland) theatrical market. Local box office accounted for a much higher share of the total for unofficial co-productions (40%) and UK national films (37%). In contrast, higher proportions of the total box office 4 were generated from overseas (non-UK/Ireland) territories by UK/USA films and official UK co-productions.

Figure 8.4 Local and overseas share of UK film box office, production years, 2003–2006 5 % share 100.0

80.0

7 60.0

40.0 8

20.0 9

0 100% UK national Off. co-pro (excl USA) Unoff. co-pro (excl USA) UK/USA Total 10

UK/Ireland % 37.2 14.9 39.5 17.5 17.9 Overseas % 62.8 85.1 60.5 82.5 82.1 11 Source: Nielsen EDI, DCMS, UK Film Council. Notes: Release rates subject to limit of two years from principal photography (see Section 8.2). Box office figures valid to 8 February 2009.

Table 8.11 shows the relative importance of the international territories for UK films. The North American market 12 accounted for 47% of the total international box office for UK films grossed from the 12 Nielsen territories. This was followed by the European countries represented (23%), UK and Ireland (18%), the main territories of Latin America and Australasia (both at 6%). The commonality of the English language between most UK films and the North 13 American audience and the fact the US box office is the largest in the world partly explain the higher share of total box office of UK films attributed to the North American market.

14 Table 8.11 Share of 12 territory international box office of UK films by geographically grouped territories, production years, 2003–2006 % Share of 15 international box office

USA and Canada 47 16 Austria, France, Germany, Spain 23 UK/Ireland 18 17 Argentina, Brazil, Chile, Mexico 6 Australia and New Zealand 6 18 Total of Nielsen EDI multi-territory box office 100

Source: Nielsen EDI, UK Film Council. Notes: Release rates subject to two year release limit (see section 8.2). Box office figures valid to 8 February 2009. 19

Chapter 8: Theatrical release history and comparative performance of UK films – 65 21 8.12 Financial success analysis It is difficult to measure the overall profitability of UK films. However, a proxy measure such as the ratio of international box office to budget can be a useful indicator. Our analysis suggests that if a low-to-medium-budget British film generates box office revenues greater than twice its budget in the 12 Nielsen territories, it is likely to be in profit by the time returns from ancillary revenues (video and television) are added to its income stream and all costs deducted (including VAT, exhibition, distribution and retail margins, prints and advertising etc). Below that level it is likely to have made a loss. Figure 8.5 shows the budget to box office ratio by budget of UK films shot between 2003 and 2006 that had gained a theatrical release within two years from principal photography. Over this period only 35 (11%) of the 333 UK films released internationally (in at least one of the 12 Nielsen EDI territories) achieved a multi-territory box office to budget ratio of two or above. This suggests that only a small number of internationally-released UK feature films are likely to have made profits for their producers and investors and underlines the highly risky nature of film investment.

Figure 8.5 International box office/budget ratio by budget of UK films across 12 territories, production years, 2003–2006

Box office/budget ratio 8

1 2.5 5 10 25 50 100 200 Budget (£ million)

Each dot is one film.

Source: Nielsen EDI, DCMS, UKFC. Notes: Release rates subject to two year release limit (see section 8.2). Box office figures valid to 8 February 2009. The horizontal axis is in log scale. Films with budgets over £150 million are not shown as the information may be disclosive.

Overall, 11% of the released films achieved a multi-territory box office to budget ratio of two or above. However, there has been an upward trend over the period 2003 to 2006, as Table 8.12 shows.

66 –UK Film Council Statistical Yearbook 2009 1

Table 8.12 Percentage of UK films achieving multi-territory box office to budget ratio of two or above by year of 3 production, 2003–2006 2003 2004 2005 2006 Total No. of films released with two years of principal photography 103 81 79 70 333 4 No. of films achieving a ratio of 2 or above 7 8 8 12 35

% of films achieving a ratio of 2 or above 6.8 9.9 10.1 17.1 10.5 5

Source: Nielsen EDI, UK Film Council. See notes to Figure 8.5. 6 Table 8.13 shows that UK/USA films (27%) were the most likely type of UK production to achieve a multi-territory box office to budget ratio of two or above over the reference period. They were followed by 100% UK national films (5%) and independent official UK co-productions (3%). None of the eight unofficial UK co-productions achieved this ratio. 7

Table 8.13 Percentage of UK films achieving multi-territory box office to budget ratio of two or above by type of production, production years, 2003–2006 8 Official Unofficial 100% co-productions co-productions UK national (excluding USA) (excluding USA) UK/USA Total 9 No. of films released within two years of principal photography 77 152 8 96 333 Number of films achieving a ratio of two or above 4 5 0 26 35 10 % of films achieving a ratio of two or above 5.2 3.3 0 27.1 10.5

Source: Nielsen EDI, UK Film Council. 11 See notes to Figure 8.5.

See also: 17 •For cinema admissions and box office in 2008 see Chapter 1 (page 6)

•For UK films on video see Chapter 11 (page 88) 18 •For UK films on television see Chapter 12 (page 94)

•For UK films internationally see Chapter 6 (page 42) 19 •For US studio involvement in UK film production in 2008 see Chapter 17 (page 145)

•Analysis of the film economy is given in Chapter 20 (page 163). 20

Chapter 8: Theatrical release history and comparative performance of UK films – 67 21 Chapter 9: Distribution

Film distribution in the UK is Facts in focus • The top ten distributors had a 95% share of the market dominated by a few very large in 2008, unchanged from 2007. companies but some smaller • Weekdays (Monday to Thursday) accounted for 41% companies distribute almost as of the box office, the highest share since our records began. many titles. Their combined • Opening weekends represented 27% of the total spending on advertising was box office. less in 2008 than in 2007 • Estimated total advertising spend was £172 million, despite the higher number a 4% fall on 2007. • Approximately £43 million was spent on advertising of films released. British films, down from £48 million in 2007. 1

9.1 Distributors in 2008 3 The top 10 distributors had a 95% share of the market, unchanged from 2007 (Table 9.1). The remaining 82 distributors handled a total of 368 titles, 58% of the total, but gained only a 5% share of the box office. The leading distributor was Universal Pictures, which released the highest grossing film of all time in the UK, Mamma 4 Mia!, followed by Paramount in second place which distributed Indiana Jones and the Kingdom of the Crystal Skull, Madagascar: Escape 2 Africa, Kung Fu Panda and Iron Man. Sony Pictures was in third place thanks to Quantum of Solace and Hancock. 5

Table 9.1 Distributor share of box office, UK and Republic of Ireland, 2008 6 Market Films on Box office share release gross Distributor (%) 2008 (£ million) Universal Pictures 18.6 31 177.7 7 Paramount 17.0 26 162.4

Sony Pictures 12.5 22 119.4 8 Warner Bros 11.0 21 105.2

Walt Disney Studios 10.0 19 95.3 9 20th Century Fox 9.4 26 90.2

Entertainment 7.9 22 75.9 10 Momentum 3.5 23 33.2 Lions Gate 2.5 21 23.9 11 Pathé 2.1 19 19.8 Sub-total 94.5 230 903.0 12 Others (82 distributors) 5.5 368 53.7 Total 100.0 598 956.7 13 Source: Nielsen EDI. Box office gross = cumulative box office total for all films handled by the distributor in the period 4 January 2008 to 1 January 2009.

Table 9.2 highlights the top 10 distributors of foreign language films at the UK box office. The list is dominated by 14 companies which release Indian films, such as Yash Raj, Eros and UTV Communications. Curzon Artificial Eye released the most foreign language titles – 18 – in 2008 while Optimum released the biggest foreign language hit of the year, The Orphanage. 15

Image: Sex and the City courtesy of Warner Brothers Pictures Chapter 9: Distribution – 69 21 Table 9.2 Top 10 distributors of foreign language films in the UK and Republic of Ireland, 2008 Films Average Box office released widest point gross Distributor in 2008 of release (£ million) Yash Raj 6443.5 Optimum Releasing 7 33 3.0 Eros International 17 26 2.4 UTV Communications 6 29 2.4 Curzon Artificial Eye 18 10 2.2 Studio 18 3482.1 Pathé 5151.4 Lions Gate 2181.2 Adlabs 6291.1 Momentum 5281.1

Source: Nielsen EDI, RSU analysis. Note: The list includes distributors releasing two or more foreign language titles in the period 4 January 2008 to 1 January 2009.

9.2 Distributors 2004–2008 The distributors’ market shares fluctuate from year to year (Table 9.3). The leading distributor of 2008, Universal Pictures, saw its market share increase thanks to Mamma Mia!. The share of box office made by distributors outside the top 10 ranged from under 3% in 2005 to over 5% in 2007 and 2008.

Table 9.3 Distributor market share as percentage of box office gross, 2004–2008 Distributor 2004 2005 2006 2007 2008 Universal Pictures – – – 13.9 18.5 Paramount – – – 14.7 16.9 Sony Pictures 10.0 6.8 16.1 8.2 12.5 Warner Bros 14.7 18.2 8.2 15.6 11.0 Walt Disney 14.5 13.1 15.7 10.7 9.9 20th Century Fox 10.7 14.3 20.9 13.9 9.4 Entertainment 7.9 9.4 7.9 9.5 8.0 Momentum 2.2 1.9 2.3 3.4 3.5 Lions Gate 1.0 0.3 2.4 2.3 2.5 Pathé 2.8 3.4 3.2 1.3 2.1 UIP* 29.8 29.1 18.9 – – Top 10 total** 96.1 97.3 96.4 94.5 94.5 Others 3.9 2.7 3.6 5.5 5.5 Total 100.0 100.0 100.0 100.0 100.0

Source: Nielsen EDI. *Until 2006 Paramount and Universal distributed jointly as UIP. **Top 10 total refers to the top 10 distributors of that particular year. Table is ranked by top 10 distributors in 2008.

70 –UK Film Council Statistical Yearbook 2009 1

9.3 Weekend box office 3 In 2008, 59% of the box office was taken at weekends (Friday to Sunday), down from 64% in 2007, while the weekday share climbed from 37% to 41% (Table 9.4). The higher weekday cinema attendance can be explained by the success of films such as Mamma Mia! which attracted large weekday audiences, and the continued impact of the 4 ‘Orange Wednesdays’ promotion.

Table 9.4 Box office percentage share by weekday/weekend, 2004–2008 5 2004 2005 2006 2007 2008

Friday 15.3 18.0 16.5 16.4 16.7 6 Saturday 24.5 27.0 25.1 27.8 24.4

Sunday 19.9 19.0 18.7 19.3 18.3 7 Weekend 59.7 64.0 60.3 63.5 59.4

Monday 9.7 8.0 9.5 7.2 9.4 8 Tuesday 10.1 8.0 9.5 9.0 9.5 Wednesday 10.7 10.0 10.9 11.6 11.9 9 Thursday 9.8 10.0 9.7 8.7 9.9 Weekday 40.3 36.0 39.7 36.5 40.7 10 Total 100.0 100.0 100.0 100.0 100.0

Source: Nielsen EDI. 11 The opening weekend box office as a share of total theatrical revenue fell to 27% in 2008 as shown in Table 9.5. Top films such as Mamma Mia!, The Dark Knight and Sex and the City had longer theatrical runs and so their opening weekend represented a smaller share of overall box office. 12

Table 9.5 Opening weekend as percentage of total box office, 2007–2008 13 % of total in % of total in opening opening weekend weekend Range of box office results 2007 2008 14 All films 28.5 27.3 More than £30 million 35.8 21.7 15 £20 million – £30 million 30.2 31.0 £10 million – £19.9 million 20.0 29.2 £5 million – £9.9 million 25.4 27.6 16 £1 million – £4.9 million 28.1 27.4 £200,000 – £999,000 31.9 34.1 17 Less than £200,000 34.1 34.8

Source: Nielsen EDI, RSU analysis. 18 Opening weekends include preview figures. For films with a limited initial opening, the wider release figure is included in the analysis.

Chapter 9: Distribution – 71 21 9.4 Release costs Table 9.7 Estimated release cost by width of release, 2008 The opening weekend of a film is recognised as being Average release crucial to the lifetime of a film, both in cinemas and on Sites at widest cost subsequent release platforms. Distributors invest heavily point of release (£ million) in advertising in order to raise a film’s profile across all >500 3.95 media (outdoor posters, print media, television, radio and increasingly online). The estimated total distributor 400–499 2.21 advertising spend in 2008 was £172 million, down 4% 300–399 1.39 from £179.5 million in 2007 (Table 9.6). Press spend has fallen over the last five years (from £30.1 million in 2003) 200–299 0.90 while the internet has emerged as an outlet for film 100–199 0.43 advertising (although the level of spend is down 4% on 2007). Approximately £43 million was spent on 50–99 0.18 advertising British films, down from £48 million in 2007. 10–49 0.08 <10 0.01 Table 9.6 Estimated advertising spend, 2008 Source: Nielsen Media Research, Nielsen EDI, RSU analysis. (£ million) TV 79.3 Outdoor 56.2 Press 22.6 Radio 9.4 Internet 4.5 Total 172.0

Source: Nielsen Media Research.

Where the data are available, the total release costs for various release widths can be estimated. By taking a typical print cost of £1,000 per print and adding the Nielsen Media Research advertising spend estimate plus 20% for other public relations campaigns, publicity and premiere costs, the average release cost for each level of theatrical release can be calculated (Table 9.7). This shows that for films released across the widest number of cinemas (500+), the average release cost was almost £4 million.

See also: •For further details about the UK box office in 2008 see Chapter 1 (page 6) •For more information about the top films at the UK box office in 2008 see Chapter 2 (page 12) •For an overview of employment in film distribution see Chapter 21 (page 172).

72 –UK Film Council Statistical Yearbook 2009 Image: Burn After Reading courtesy of Universal Pictures Chapter 10: Exhibition

Cinemas provide the best Facts in focus • The UK had 3,610 screens, 96 more than 2007, in environment for people to 726 cinemas. enjoy films as they are • There was a decrease in the number of screens in rural intended–on the big screen, locations, but an increase in town centres, out of town and edge of town locations. with a large audience. • Of the Government Office Regions, London had the The recent development of highest number of screens overall (15% of the UK total), digital screens and digital 3D followed by the South East and North West. • Only 7% of screens were dedicated to ‘specialised’ (that technology has enhanced the is non-mainstream) programming, with 0.3% showing range of content possible on South Asian films. screen, including live events • The average ticket price was £5.18. via streaming, and may bring • The UK continued to have the highest number of digital screens in Europe at 305 screens, 69 (23%) of which new audiences to the cinemas. were capable of screening digital 3D features. 10.1 UK cinema sites Figure 10.1 shows the number of cinema sites in the UK from 2002 to 2008. The number of sites decreased slightly in 2004 but has risen since and exceeded 700 sites in 2007. In 2008 sites fell by one to 726 (727 in 2007), of which 37% were multiplex sites, 2% more than in 2007.

Figure 10.1 UK cinema sites by type of site, 2002–2008 Number of sites 800

700

600

500

400

300

200

100

0 2002 2003 2004 2005 2006 2007 2008 Multiplex 229 234 238 242 249 258 269 Traditional and mixed use 439 444 406 417 448 469 457

Source: Dodona Research, RSU analysis. Note: Data on cinema sites prior to 2002 not availabe. Multiplexes are defined as purpose-built cinema complexes with five screens or more while excluding those that were converted from traditional cinema sites.

10.2 UK screens The number of owned or programmed cinema screens (excluding those operated in venues such as schools and private screening rooms) continued to increase in 2008, rising 3% to 3,610 as Figure 10.2 shows. The proportion of multiplex screens (see definition in the footnote to Figure 10.1) continued to rise in 2008. There has been a rise of 66% in the number of multiplex screens since 1999 compared with a 19% fall in the number of traditional and mixed-use screens (used for film screenings only part of the time). The UK has gained 1,065 multiplex screens since 1999 and lost 213 traditional or mixed-use screens. The proportion of multiplex screens increased from 59% in 1999 to 74% in 2008.

Figure 10.2 UK Cinema screens by type of cinema, 1999–2008 Number of screens 4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Multiplex 1,624 1,874 2,115 2,299 2,362 2,426 2,453 2.512 2,578 2,689 Traditional and mixed use 1,134 1,080 1,049 959 956 916 904 928 936 921

Source: Dodona Research, RSU analysis

74 –UK Film Council Statistical Yearbook 2009 1

Table 10.1 shows that more multiplex sites and screens opened than closed in 2008 while there were net falls in the 3 number of traditional sites and screens over the same period. The number of traditional screens fell again after two small rises in 2006 and 2007 as shown in Figure 10.2.

A total of 43 sites (all but one traditional) closed in 2008, an increase of 30% on the number of closures in 2007, 4 with a loss of 63 screens. Forty-two sites opened (including 12 multiplexes), adding 159 screens, including 117 multiplex screens. 5 Table 10.1 Site openings and closures, 2008 Multiplex Traditional 6 sites screens sites screens Opened 12 117 30 42 Closed 1 6 42 57 7 Net difference +11 +111 –12 –15

Source: Dodona Research, RSU analysis. 8 See footnote to Figure 10.1.

10.3 Screen location 9 Historically cinemas have been a feature of the urban landscape and 2008 was no different with 97% of all screens in the UK in town or city centres, edge of centre, ‘out of town’ or suburban locations. 10 Table 10.2 shows suburban and rural cinemas tend to have fewer screens on average than their urban counterparts, although town and city centre sites are also relatively small. The number of rural screens fell fractionally by 3% from 98 in 2007 to 95 in 2008. 11

Table 10.2 Screens by location, 2003–2008 12 Average % change number of Location 2003 2004 2005 2006 2007 2008 2007/08 screens per site Town/city centre 1,470 1,502 1,495 1,555 1,616 1,683 +4.1 3.7 13 Out of town 1,234 1,243 1,250 1,262 1,284 1,303 +1.5 9.7 Edge of centre 464 465 479 478 486 499 +2.7 8.9 14 Suburban 33 33 38 40 30 30 0.0 1.7 Rural 117 99 95 105 98 95 –3.1 1.4 15 Total 3,318 3,342 3,357 3,440 3,514 3,610 +2.7 5.0

Source: Dodona Research, RSU analysis. 16

10.4 Screen density and admissions per person – international comparisons 17 A standard way to gauge the level of cinema provision is by ‘screen density’, that is the number of screens per unit population. In 2008 the UK figure was 6.0 screens per 100,000 people, fractionally higher than the figure of 5.8 in 2007. This level of screen access falls short of the numbers in other major film territories: USA 12.7, Australia 9.4, 18 Spain 9.1, France 8.8 and Italy 7.1. Germany fell behind the UK at 5.8 in 2008 (source: Screen Digest). Table 10.3 shows the numbers of admissions per person in a number of major film territories. The UK saw more admissions per person (2.7) than Spain, Italy and Germany despite having lower screen density than Spain and Italy, 19 and for the first time since 2003, Australia surpassed the USA at 4.2 admissions per person.

Chapter 10: Exhibition – 75 21 Table 10.3 Admissions per person in major film territories, 2003–2008 Australia USA France UK Spain Italy Germany 2003 4.5 5.4 2.9 2.8 3.3 1.5 1.8 2004 4.5 5.2 3.2 2.9 3.4 1.7 1.9 2005 4.0 4.7 2.9 2.7 2.9 1.6 1.5 2006 4.1 4.8 3.1 2.6 2.7 1.6 1.7 2007 4.1 4.6 2.9 2.7 2.6 1.8 1.5 2008 4.2 4.1 3.0 2.7 2.4 1.7 1.6

Source: Screen Digest.

10.5 Screen density and admissions per person in the UK As in the previous Yearbooks we are able to present screen provision data based on two types of regional classification. The datasets are not directly comparable because of differences in the way the regions are defined; they do, however, shed light on different aspects of national and regional variation in screen provision. The Cinema Advertising Association produces monthly admissions totals for each of the television advertising regions used by the Incorporated Society of British Advertisers (ISBA). Screen and admissions data for 2008 using these television regions are presented in Table 10.4. Although London had the highest numbers of screens and sites, its screen density (6.6) was lower than that of Northern Ireland (9.5) and was the same as Wales and West and Central Scotland (both at 6.6). On the other hand the North East had lower numbers of sites and screens as well as the lowest screen density (3.9) among all ISBA regions.

Table 10.4 Screens and admissions by ISBA TV region, 2008 (ranked by screens per 100,000 people) % of total Population Screens per Admissions Admissions Admissions ISBA TV region Screens screens Sites (‘000)* 100,000 people (‘000) per screen per person Northern Ireland 166 4.6 24 1,742 9.5 5,439 32,765 3.1 Wales and West 308 8.5 74 4,650 6.6 10,839 35,192 2.3 Central Scotland 236 6.5 37 3,580 6.6 12,009 50,884 3.4 London 783 21.7 154 11,879 6.6 39,752 50,769 3.3 Lancashire 430 11.9 60 6,852 6.3 18,334 42,638 2.7 Southern 324 9.0 83 5,254 6.2 15,324 47,295 2.9 Border 35 1.0 18 597 5.9 1,337 38,209 2.2 Midlands 545 15.1 104 9,570 5.7 23,199 42,566 2.4 South West 101 2.8 34 1,775 5.7 3,877 38,384 2.2 Northern Scotland 66 1.8 16 1,240 5.3 3,413 51,719 2.8 East of England 215 6.0 46 4,054 5.3 10,856 50,491 2.7 Yorkshire 290 8.0 51 5,724 5.1 13,648 47,060 2.4 North East 111 3.1 25 2,824 3.9 6,197 55,825 2.2 Total 3,610 100.0 726 59,741 6.0 164,222 45,491 2.7

Source: Dodona Research, Beacon Dodsworth, CAA, RSU analysis. *Mid-year population estimates 2006/07. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI).

76 –UK Film Council Statistical Yearbook 2009 1

A regression analysis (weighted to each ISBA region’s population) shows a positive and statistically-significant linear 3 relationship between cinema admissions per person and screen density in 2008, as shown in Figure 10.3. That is, the higher the number of screens per person, the higher the admission level. However, this association should not be interpreted as a causal relationship as it would be hard to prove whether higher demand caused the higher supply 4 of cinema screens or vice versa. Figure 10.3 also shows that while some regions had above-average screen densities, their levels of admission remained low. For example, Wales and the West had a relatively high screen density of 6.6 (per 100,000 people) 5 but its cinema admission rate was one of the lowest at 2.3 admissions per person. It is hard to pinpoint the reason behind this observation. The levels of cinema admissions across regions are subject to numerous influences, such as fluctuation in population sizes during tourist seasons, the age composition of the population, presence or absence 6 of a film culture and varying competition from other forms of entertainment.

Figure 10.3 Cinema admissions per person by screen density across ISBA regions, 2008 7 Admissions per person 3.5 London Central Scotland 8 Northern Southern Ireland 3.0 Northern Scotland 9

East of Lancashire England

2.5 Midlands 10 North East Yorkshire Wales and West Border South West

2.0 4 5 6 789 10 11 Screen density

Source: Dodona Research, Beacon Dodsworth, CAA, RSU analysis. Notes: 12 1. The line shown above is derived from a weighted linear regression. So the results are more influenced by areas with larger population, for example, London and the Midlands. 2. The area of the circle is proportional to the ISBA region’s population. 3. Screen density means number of screens per 100,000 people. 13 Table 10.5 gives screen information for each of the English Government Office Regions, plus Scotland, Wales and Northern Ireland, which correspond to the areas covered by the nine English Regional Screen Agencies, Scottish Screen, the Film Agency for Wales and Northern Ireland Screen. 14

Chapter 10: Exhibition – 77 21 Table 10.5 Screens and population in the nations and Government Office Regions, 2008 (ranked by screens per 100,000 people) Population Average % of total (in ‘000) Screens per number of Government Office Region Screens screens Sites mid-year 2007* 100,000 people screens per site Northern Ireland 166 4.6 24 1,759 9.4 6.9 London 554 15.3 110 7,557 7.3 5.0 North West 436 12.1 64 6,864 6.4 6.8 South East 516 14.3 122 8,309 6.2 4.2 Wales 185 5.1 48 2,980 6.2 3.9 Scotland 314 8.7 61 5,144 6.1 5.1 South West 312 8.6 82 5,178 6.0 3.8 West Midlands 308 8.5 52 5,382 5.7 5.9 Yorkshire 252 7.0 44 5,177 4.9 5.7 East Midlands 206 5.7 43 4,400 4.7 4.8 East of England 234 6.5 49 5,661 4.1 4.8 North East 106 2.9 22 2,565 4.1 4.8 Others** 21 0.6 5 N/A N/A 4.2 Total 3,610 100.0 726 60,975 5.9 5.0

Source: Dodona Research, ONS, RSU analysis. *Mid-2007 Population Estimates, ONS. **Others include the Channel Islands and the Isle of Man. N/A = not available.

The pattern of regional and national variation in screen provision remains unchanged in 2008. It is still the case that areas of high urban population, like London, the South East and the North West, had higher screen numbers. Northern Ireland had the highest number of screens per 100,000 people of the four nations (9.4), followed by Wales (6.2), Scotland (6.1) and England (5.7). Table 10.5 also reveals that Northern Ireland and the North West had on average over six screens per site compared with the national average of five. The South West, Wales and the South East fell below the average, showing a tendency towards smaller cinemas and proportionately fewer multiplexes (see Table 10.6 below).

10.6 Areas of ‘cinema deprivation’ in England The varying levels of access to cinemas in England are further highlighted by Figure 10.4 showing cinema provision by local authority districts. The districts in red can be considered ‘cinema deprived’ as they are areas where over 80% of the households within them were more than 10 kilometres from the closest commercial cinema. Some of the most deprived districts included Restormel (95% of 23,252 households) in the South West, Castle Morpeth (91% of 15,558 households) in the North East and Maldon (95% of 16,913 households) in the East of England. The potential unmet demand for cinemas in these areas is partly fulfilled by community cinemas and film societies, as described in section 10.12.

78 –UK Film Council Statistical Yearbook 2009 1

Figure 10.4 Cinema ‘deprivation’ by local authority districts in England, 2008 3

Percentage of households greater than 10km from 7 a commercial cinema 0–19.99% 20–39.99% 8 40–59.99% 60–79.99% 9 80–100%

10.7 Type of cinema screens by nation and region 13 Table 10.6 provides a snapshot of variations in multiplex provision around the UK. The North West had the largest number of multiplex screens (387), 20 more than London, and the highest proportion of multiplex screens (89%). 14 By far the lowest concentration of multiplex screens was found in the South West (59%), which had a particularly high number of traditional and mixed-use screens (the third highest after London and the South East). The proportion of multiplex screens for England was 74%. The Channel Islands and Isle of Man (48%) also had proportionally fewer 15 multiplex screens than the national average.

Chapter 10: Exhibition – 79 21 Table 10.6 Cinema screens by type by nation or Government Office Region, 2008 (ranked by percentage multiplex) Government Office Traditional and Region Multiplex % Multiplex mixed use Total North West 387 88.8 49 436 Yorkshire 211 83.7 41 252 North East 87 82.1 19 106 Northern Ireland 136 81.9 30 166 West Midlands 241 78.2 67 308 Scotland 238 75.8 76 314 East Midlands 156 75.7 50 206 Wales 140 75.7 45 185 East of England 176 75.2 58 234 South East 367 71.1 149 516 London 356 64.3 198 554 South West 184 59.0 128 312 Other* 10 47.6 11 21 Total 2,689 74.5 921 3,610

Source: Dodona Research, RSU analysis. *Other includes the Channel Islands and the Isle of Man.

10.8 Mainstream, specialised and South Asian programming Dodona Research categorises screens according to whether they show mainly mainstream, specialised (that is non-mainstream, including ‘art-house’) or South Asian films. Table 10.7 shows that by far the majority of screens mainly show mainstream films. In 2008, 554 cinemas with 3,350 screens showed mainly mainstream films (a rise of 1% for sites and 3% for screens). This compared with 168 sites (250 screens, 7% of screens) showing specialised films and four cinemas (10 screens, 0.3% of screens) dedicated mainly to South Asian films. The numbers of cinemas and screens showing mainly specialised films both fell in 2008, by 5% for cinemas and 2% for screens.

Table 10.7 Sites and screens by programme, 2005–2008 Sites Screens

Programme 2005 2006 2007 2008 2005 2006 2007 2008 South Asian 5 5 4 4 18 18 10 10 Specialised 132 157 177 168 206 231 255 250 Mainstream 522 535 546 554 3,133 3,191 3,249 3,350

Source: Dodona Research, RSU analysis.

The majority (68%) of specialised screens were found in single, independently-owned cinemas (that is, not part of a chain). The pattern of programme type by location in 2008 is shown in Table 10.8. Screens showing mainly South Asian films were located in town or city centres and suburban areas, while those devoted to specialised film were mainly found in town or city centres. The overall pattern remained similar to last year.

80 –UK Film Council Statistical Yearbook 2009 1

Table 10.8 Proportion of screens by location and programme, 2008 3 Location Asian Specialised Mainstream Total Town/city centre 80.0 84.4 43.7 46.6 4 Out of town 2.8 38.7 36.1 Edge of centre 2.4 14.7 13.8 5 Rural 6.4 2.4 2.6 Suburban 20.0 4.0 0.5 0.8 Total 100.0 100.0 100.0 100.0 6

Source: Dodona Research, RSU analysis.

7 This geographical analysis is extended in Tables 10.9 and 10.10, which reveal the distribution of South Asian and specialised screens around the country. Table 10.9 shows that 80% of all screens showing South Asian films were found in London, with the remainder in the East Midlands, both areas having large British Asian populations. 8

Table 10.9 Geographical spread of South Asian screens, 2008

Government Office Region South Asian screens % 9 London 880

East Midlands 22010 Total 10 100

Source: Dodona Research, RSU analysis. 11 Screens showing mainly specialised films were concentrated in London and the South East, which housed 44% of them in 2008 (Table 10.10). Scotland and the South West both had 27 specialised screens, each accounting for 11% of such screens. The North East (3.2%), Wales (2.8%) and Northern Ireland (0.8%) had the smallest number of 12 specialised screens.

Table 10.10 Geographical spread of specialised screens, 2008 13 Government Office Region Specialised screens %

London 71 28.4 14 South East 38 15.2

Scotland 27 10.8 15 South West 27 10.8

East of England 18 7.2 16 West Midlands 16 6.4 East Midlands 13 5.2 17 Yorkshire 12 4.8 North West 11 4.4 18 North East 83.2 Wales 72.8 19 Northern Ireland 20.8 Total 250 100.0 20 Source: Dodona Research, RSU analysis.

Chapter 10: Exhibition – 81 21 10.9 Exhibitors The number of exhibitors that owned or programmed 20 or more screens in the UK fell to 11 in 2008 (13 in 2005 and 2006, 12 in 2007), as shown in Table 10.11. The five largest exhibitors owned approximately 74% of all UK screens. The order of the list remained similar to last year except for Hollywood Screen Entertainment (19 screens) which owned less than 20 screens in 2008.

Table 10.11 Cinema screens by exhibitors with 20+ screens, 2008 % of Exhibitor Sites Screens total screens Odeon 107 834 23.1 Cineworld 74 758 21.0 Vue 63 608 16.8 National Amusements 21 274 7.6 Ward Anderson 24 206 5.7 Apollo 13 77 2.1 City Screen 18 51 1.4 Reel Cinemas 13 48 1.3 Movie House Cinemas 5 39 1.1 AMC 2280.8 Merlin Cinemas 9260.7 Others 375 657 18.2 Total 726 3,610 100.0

Source: Dodona Research. Figures correct as at March 2009. Notes: Odeon is owned by Terra Firma Capital Partners, a European private equity firm with headquarters in London and Frankfurt. Cineworld comprises the former Cine-UK and UGC chains and is owned by The Blackstone Group, a multinational private equity company. Vue, which acquired Warner Village cinemas in 2003, is owned by SBC International Cinemas (headquartered in the UK). National Amusements is owned by the family of Sumner Redstone, chairman of US media giant Viacom. Ward Anderson is headquartered in the Republic of Ireland where it operates the Cineplex, IMC and Omniplex chains.

82 –UK Film Council Statistical Yearbook 2009 1

10.10 Exhibitor revenues 3 Dodona Research reports that total exhibitor revenue in 2008 stood at £1,084 million, 3% higher than in 2007. Net concession revenue stood at £273 million (a rise of 4% on 2007), while gross advertising revenue totalled £195 million. 4 Average ticket prices, calculated by dividing UK box office gross for the year (£850 million) by total UK admissions (164.2 million), rose from £5.05 in 2007 to £5.18 in 2008, an increase of 3%. 5

10.11 Digital projection 6 10.11.1 Digital Screen Network (DSN)

The UK Film Council’s 239 state of the art Digital Cinema Screens had been installed by the end of 2008. The end of 7 the final installations marked the beginning of the four-year contract with the cinemas for the delivery of specialised films. The DSN accounted for 77% of all high-end digital screens in the UK at the end of 2008.

The DSN continues to be a platform for new models of release. Documentaries Shine a Light and The Age of Stupid 8 both used the network to turn their London premieres into nationwide events, showing the film simultaneously in digital screens across the UK accompanied by live satellite coverage of the premieres. Specialised films such as Waltz with Bashir, Mongol and The Edge of Love played on the network in 2008, while the distribution of restored cinema 9 classics continued to utilise the DSN, including retrospectives of David Lean and White Christmas.

10.11.2 Digital screens worldwide and in the UK 10 According to Screen Digest, at the end of 2008 there were 8,797 DCI–level (Digital Cinema Initiatives; see Glossary) digital screens worldwide, 36% up on 6,455 screens in 2007. Table 10.12 shows the number of high-end digital (often 11 referred to as ‘D-Cinema’ in the industry) screens in the world from 2005 to 2008. Worldwide, digital screens have increased more than ten-fold since 2005.

12 Table 10.12 Number of high-end digital screens in the world, 2005–2008 % change in % of screens 13 Region 2005 2006 2007 2008 2008 total 2007/08 Americas 345 2,030 4,666 5,754 65.4 23.3 14 Asia-Pacific 272 430 919 1,471 16.7 60.1 Europe 229 532 864 1,544 17.6 78.7 of which UK 38 148 296 310 3.5 4.7 15 Africa and Middle East 2 4 6 28 0.3 366.7

Total 848 2,996 6,455 8,797 100.0 36.3 16

Source: Screen Digest. Note: Figures prior to 2007 include a small number of digital screens using the earlier projectors (1.3K DLP Cinema projectors) that do not meet the DCI specifications. The minimum projector resolution for DCI is 2K (see Glossary). Figures valid to April 2009. 17 The rise in digital screens in the world continued in 2008. It was fuelled by the continuing growth of digital screens in the Americas (46% of the total increase of 2,342 digital screens in 2008) and similar levels of increase in Europe (29% of the total increase) and the Asia-Pacific region (24% of the total increase). The growth in the Americas was 18 mainly attributed to the increase of 883 screens in the USA to 5,515 in 2008 (4,632 in 2007).

Chapter 10: Exhibition – 83 21 In Europe five countries, led by the UK, had more than 100 digital screens in 2008 (UK and Germany only in 2007) as shown in Table 10.13. The top five countries had 62% (68% in 2007) of all of the high-end digital screens in Europe. The UK continued to have the largest number of high-end digital screens at 310 screens. However, its lead was narrowed following a sharp rise of 408% to 254 digital screens in France. Another three European countries experienced over 200% increase from 2007 to 2008, namely Poland (588% rise to 55 screens), Austria (240% to 119) and Russia (227% to 98).

Table 10.13 European countries with 20 or more high-end digital screens in 2007 and 2008, ranked by number of screens % of Year 2008 % change Europe from Country 2007 2008 total 2007 UK 296 310 20.1 +4.7 France 50 254 16.5+408.0 Germany 135 164 10.6 +21.5 Austria 35 119 7.7 +240.0 Belgium 65 107 6.9 +64.6 Russia 30 98 6.3 +226.7 Italy 41 78 5.1 +90.2 Spain 31 58 3.8 +87.1 Poland 8 55 3.6 +587.5 Norway 25 48 3.1 +92.0 Ireland 33 46 3.0 +39.4 Netherlands 29 36 2.3 +24.1 Portugal 24 36 2.3 +50.0 Rest of Europe 62 135 8.7 +117.7 Europe total 864 1,544 100.0 +78.7

Source: Screen Digest. See note to Table 10.12.

The Asia-Pacific region had 73 fewer high-end digital screens than Europe in 2008 (Table 10.12). Table 10.14 shows that the top five countries had over 91% of all digital screens in the region. In the Asia-Pacific region, China continued to have the highest number of high-end digital screens (861 in 2008, a 53% rise on 2007). India experienced a sharp rise of 918% to 112 digital screens in 2008 (11 in 2007).

84 –UK Film Council Statistical Yearbook 2009 1

Table 10.14 Countries in Asia-Pacific region with 20 or more high-end digital screens in 2007 and 2008, ranked by 3 number of screens % of Year 2008 % change Asia-Pacific from 4 Country 2007 2008 total 2007 China 564 861 58.5 +52.7 5 South Korea 173 199 13.5 +15.0 Japan 86 123 8.4 +43.0 India 11 112 7.6 +918.2 6 Australia 27 42 2.9 +55.6 Taiwan 10 29 2.0 +190.0 7 Singapore 27 28 1.9 +3.7

Turkey 4 22 1.5 +450.0 8 Rest of Asia-Pacific 17 55 3.7 +223.5

Asia-Pacific total 919 1,471 100.0 +60.1 9

Source: Screen Digest. See note to Table 10.12. 10 10.11.3 3D and alternative content programming Of the 310 high-end digital screens in the UK in 2008, 69 (22%) of them were 3D capable digital screens. This represents 11 a six-fold increase in the proportion of 3D digital screens since 2006. Some of the popular 3D screenings in the UK in 2008 included Journey to the Center of the Earth, Fly Me to the Moon and U2 3D. Table 10.15 shows the increasing number and proportion of 3D digital screens in the UK. The growth in 3D digital 12 screens coincided with an increase in the availability of 3D content internationally. According to Screen Digest, the number of digital 3D features (films produced in stereoscopic 3D format) released internationally rose from two and three in 2006 and 2007, to seven in 2008. There is a strong line-up, especially animations, of 3D releases for 2009, 13 including Ice Age 3, Final Destination 4 and Avatar.

14 Table 10.15 3D digital screens in the UK, 2006–2008 Number of 3D digital Total digital 3D % of all Year screens screens digital screens Top performing digital 3D title in the UK/Ireland 15 2006 5 148 3.4 Chicken Little

2007 47 296 15.9 Beowulf 16 2008 69 305 22.6 Journey to the Center of the Earth

Source: Screen Digest, Nielsen EDI, RSU analysis. 17 Note: 3D digital screens are capable of screening content made in stereoscopic 3D format. Top performing digital 3D titles in the UK and Republic of Ireland include box office takings from 2D screenings.

Chapter 10: Exhibition – 85 21 Alternative content (AC) or non-feature film programming is becoming a regular feature in some UK cinemas equipped with digital screens. The availability of a digital screen base has allowed a wider range of content on the big screen and potentially improved the use of auditorium capacity during typically quiet periods, for example, special screenings of children’s television programmes for parents with babies in the morning. The number of alternative content events screened in UK cinemas more than doubled in 2008 to 67, up from 31 in 2007, according to Screen Digest. Such events ranged from live or recorded operas and pop music concerts to film screenings with a live ’question and answer’ session or a live ’virtual’ premiere, such as the opening of the documentary film, The Age of Stupid, in the UK and Ireland. Ticket prices for the different type of event varied but live events tended to be at a premium. Opera was reported to be the most commonly-screened event in 2008 followed by popular music concerts. The number of operas screened in the cinema increased almost five-fold to 39 in 2008 (eight in 2007), as Figure 10.5 shows. The National Theatre has recently announced that it will be broadcasting four plays on cinema screens across the world through a new initiative, NT Live. The first play will be Phèdre, starring Oscar-winning actress Helen Mirren. This deal might help theatre to become a more prominent alternative content event in 2009.

Figure 10.5 Alternative content events screened in UK cinemas by type of event, 2007 and 2008 Number of events 40

0 Opera Popular music concerts FIlm Sport Theatre Kids (sub division Comedy of film)

2007 8 11 7 4001 2008 39 9 4 6 6 2 1

Source: Screen Digest.

10.12 Community cinema in the UK The screening of feature films in the UK is not limited to cinemas belonging to the major cinema operators. There is a thriving sector of non-commercially oriented providers bringing a wide variety of programming, often specialised in nature, to local communities which would otherwise be underserved by the commercial operators. This sector is often referred to as community cinema. Members of local communities are often more involved in the programming of such cinemas than their counterparts served mainly by commercial operators. Screenings of films in this sector are in venues such as village halls, mixed-arts venues, independent cinemas and the like. There was a knowledge gap in the contribution of community cinema until recently. In the Yearbook 2006/07 we presented the findings of a 2006 survey, Cinema for All, commissioned by the British Federation of Film Societies (BFFS). This survey looked at the size, composition and geographical distribution of the community cinema sector in the UK (see a summary of the main findings in section 9.8.1 of the Yearbook 2006/07). An update from the first wave of the survey was provided in the Yearbook 2008 (section 9.8.1). A third survey was conducted during 2008, the full results of which are available from the BFFS website. Here we present a summary of the key findings from this survey.

86 –UK Film Council Statistical Yearbook 2009 1

While many film societies and community cinemas have been in existence over a long period, new ones are 3 established all the time. Over half (51%) of the responding organisations were established in 2000 or later while around one quarter (24%) were established in the 1960s or earlier.

Nearly all of the film societies that responded (88%) operated a membership system in 2007/08 and the average 4 membership size was 138. The membership of responding societies stood at 11,573, and like-for-like membership numbers rose by 8% over the previous year. The BFFS estimates a sum total membership of over 36,000 across all film societies. 5 The average full annual membership fee was £26.94. Less than one-third of societies that operated a membership system charged an additional admission fee (31%), which averaged £3.54 in 2007/08. 6 The responding organisations programmed a total of 625 different titles during the 2007/08 season, greater than the number of films released theatrically in the UK. Nearly a quarter (23%) of these films were British, while around two- fifths (39%) were films in a foreign language (up from 27% in the previous year). Sixty-five per cent of titles were 7 screened by only one film society, indicating the diversity of programming choices made by individual societies. Ten of the 26 films programmed by ten or more respondents in 2007/08 were British, and the same number were in a foreign language. The three most programmed films were The Lives of Others, The Page Turner and Little Miss 8 Sunshine (the only American film to make it into the top ten). Just over half of all responding organisations held special events in addition to screenings in 2007/08. The average audience size in 2007/08 was 75. The smallest audience recorded was just one admission and the largest 9 stood at 380. The sum total of all admissions from responding organisations was 115,635 for 2007/08. If this is extrapolated to all BFFS members the total number of admissions would have been around 361,000. The most commonly-used format for screenings was DVD (used ‘usually’ or ‘sometimes’ by 85% of responding 10 organisations). Fewer than one-third (29%) still used VHS, and this was the usual projection format for only 1%, while over one-third (37%) usually projected using 35mm. 11 The vast majority of film societies used only one venue for screenings (90%), and public buildings (for example, civic centres, village or town halls) were the most common type (30% used them), followed by school halls or college/university lecture theatres (18%), theatres (14%), cinemas (13%) and mixed-arts centres (13%). 12 Film societies and community cinemas enhance film provision in areas otherwise neglected by commercial cinemas. On average, film societies and community cinemas were located around eight miles from the nearest commercial cinema. Moreover, 40% operated in rural areas (compared to 3% of commercial screens, Table 10.8), and 41% of all 13 admissions were generated in the South West and South East regions, where admissions to commercial cinemas accounted for only 12% of total cinema admissions (see Table 10.4, South West and Southern ISBA regions). 14

16 See also:

•For cinema admissions and box office see Chapter 1 (page 6) 17 •For a look at cinema audiences see Chapter 15 (page 114) •For employment in the exhibition sector see Chapter 21 (page 172) 18 •See www.ukfilmcouncil.org.uk/dsn for more about the UK Film Council’s Digital Screen Network, including a list of such screens by region •For maps showing distances from households to closest commercial and independent cinemas in the UK, 19 see www.ukfilmcouncil.org.uk/exhibition

•Website for British Federation of Film Societies (BBFS): www.bffs.org.uk. 20

Chapter 10: Exhibition – 87 21 Chapter 11: Film on video

Video gives virtually everyone Facts in focus • 79 million videos were rented in 2008 (down 19% an opportunity to see films on 2007), while a record 258 million were sold within months of their cinema (up 3% on 2007). release–and of course some • The combined rental and sales market in 2008 was worth £2.56 billion. films are released on DVD only. • Film accounted for 62% of the video sales market Video rentals were down in by value and 76% by volume and UK film had a 2008 but sales soared to a 24% share. • The most popular purchase on DVD was Mamma Mia! record figure. which became the biggest-selling DVD of all time in the UK with more than five million copies sold. • Online DVD rental accounted for 49% of rental transactions in 2008, up from 30% in 2007. 1

11.1 Film in the retail video market 3 ‘Video’ is used in this chapter as the generic description of all video formats, including DVD, UMD (Universal Media Disc), high-definition DVD (HD-DVD) and Blu-ray, in line with the British Video Association’s (BVA) definition. 4 A record 258 million DVD, HD-DVDs, Blu-ray DVDs, and UMD videos were sold in 2008, with a total market value of £2,343 million (Figure 11.1). DVDs accounted for the vast bulk of video sales (98%) with new digital formats such as Blu-ray (1.5%) beginning to emerge. Feature film represented approximately 62% of the retail video market by value (£1,454 million) and 76% by volume. UK films accounted for around 24% of DVD film sales. 5

Figure 11.1 Retail video sales (all categories), 1999–2008 6 Millions 3,000

7 2,500

2,000 8

1,500

9 1,000

500 10

0 1999 2000 2001 2002 2003 2004 20052006 2007 2008 11 Volume 96 114 135 169 208 234 222 229 250 258 Value 878 1,100 1,417 1,895 2,244 2,478 2,317 2,215 2,353 2,343 12 Source: Official UK Charts Company, BVA. Data in this table include all categories of retail video: film, TV, sport, fitness etc.

Image: Kung Fu Panda courtesy of DreamWorks Animation Chapter 11: Film on video – 89 21 The number of films sold on video has more than trebled in 10 years, from 61 million units in 1999 to 196 million units last year (Figure 11.2). The average unit price increased with the introduction of DVD in the late 1990s to reach a peak in 2002, but has since fallen back to the level of the late 1990’s (£7.42) (figure 11.3).

Figure 11.2 Film on video retail sales, 1999–2008 Millions 1,800

1,600

1,400

1,200

1,000

800

600

400

200

0 1999 2000 2001 2002 2003 2004 20052006 2007 2008

Volume 61 76 96 128 158 180 164 165 188 196 Value 451 601 821 1,175 1,392 1,557 1,399 1,302 1,440 1,454

Source: UK Film Council RSU analysis of Official UK Charts Company and BVA data.

Figure 11.3 Retail price of film per unit, 1999–2008 Price (£) 10 9 8 7 6 5 4 3 2 1 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Price 7.46 7.87 8.56 9.15 8.80 8.64 8.52 7.89 7.68 7.42 Source: UK Film Council RSU.

Table 11.1 shows the top selling films on DVD in 2008. Mamma Mia! topped the chart and also became the biggest selling DVD of all time in the UK with over five million copies sold. The Dark Knight was the second biggest selling DVD of the year and also the highest selling Blu-ray disc released to date.

90 –UK Film Council Statistical Yearbook 2009 1

Table 11.1: Top 10 films on DVD retail, 2008 3 Title Country of origin Distributor 1Mamma Mia! UK/USA Universal 4 2The Dark Knight UK/USA Warner 3Sex and the City USA EIV 5 4Ratatouille USA Walt Disney 5Indiana Jones and the Kingdom of the Crystal Skull USA Paramount 6Stardust UK/USA Paramount 6 7I Am Legend USA Warner 8The Golden Compass UK/USA EIV 7 9Atonement UK/USA Universal

10 Kung Fu Panda USA Paramount 8

Source: Official UK Charts Company, BVA.

Once again, comedy was the dominant genre of films sold on video in 2008, accounting for almost 22% of the 9 market as Figure 11.4 shows. Action/adventure was the next most popular with 18% of all sales, followed by drama with 18%. 10 Figure 11.4 Sales breakdown by film genre, 2008

% 11 Comedy 21.7 Thriller 8.5 Children’s/family 11.3 12 Horror 5.8 Sci-fi 7.3 Adult 0.2 13 War 2.3 Musical 5.5 14 Drama 17.6 Western 1.2

Action/adventure 18.2 15 Anime 0.2

Source: Official UK Charts Company. 16

Chapter 11: Film on video – 91 21 The top 10 UK performers on sell-through DVD in 2008 (Table 11.2) include five UK-qualifying titles which are also in the overall top 10 of the year plus strong performances from Casino Royale (released in 2007) and comedies St Trinian’s, Hot Fuzz and Run, Fat Boy, Run.

Table 11.2 Top 10 UK-qualifying DVD film retail titles, 2008 Title Country of origin Distributor 1Mamma Mia! UK/USA Universal 2The Dark Knight UK/USA Warner 3Stardust UK/USA Paramount 4The Golden Compass UK/USA EIV 5Atonement UK/USA Universal 6Casino Royale UK/USA/Cze Sony Pictures 7St Trinian’s UK EIV 8Hot Fuzz UK Universal 9Run, Fat Boy, Run UK/USA EIV 10 Sweeney Todd UK/USA Warner

Source: Official UK Charts Company, RSU analysis.

11.2 Film in the video rental market Video rentals totalled 79 million in 2008 (including over-the-counter and online rentals) with an average value of £2.76. Online DVD renting (with postal delivery) now accounts for 49% of all rental transactions in the UK. The number of rental transactions fell by 19 million from 2007, and the value of the rental market fell to £219 million from a peak of £476 million in 2002 (Figure 11.5). This is due mainly to the rapid decline of the over-the-counter rental market in the wake of competition from multi-channel television, piracy and in particular, the availability and lower cost of retail DVDs. For context, compare this with video sales, which increased in the same period (section 11.1).

Figure 11.5 Rental video market, 1999–2008 Millions 500

450

400

350

300

250

200

150

100

0 1999 2000 2001 2002 2003 2004 20052006 2007 2008

Transactions 174 186 186 176 156 153 137 116 98 79 Value 408 444 465 476 450 461 399 340 297 219

Source: BVA, MRIB, TNS.

92 –UK Film Council Statistical Yearbook 2009 1

The most popular genre was comedy which accounted for 24% of rentals, closely followed by drama and 3 action/adventure titles (Figure 11.6). These categories, as defined by TNS, may differ from the genre categories assigned to the theatrical market by the RSU in chapter 4.

4 Figure 11.6 Video rental share by genre, 2008 % Action/adventure 16.4 5 Children’s/family 9.4 Comedy 23.9 6 Drama 22.3 Horror 6.1

Thriller 9.3 7 Sci-fi 5.0 Others 7.6 8 Source: MRIB Rental Monitor, BVA.

Unfortunately, title-by-title rental data are unavailable for inclusion in this edition. 9 11.3 Hardware

According to the BVA, 6.5 million DVD players were sold in 2008, taking cumulative DVD hardware sales since launch 10 to 55 million, the equivalent of two players for every household. In addition, consumers increasingly have access to high-definition DVD technology through dedicated players and games consoles in particular. The BVA reports that 275,000 Blu-ray stand-alone players were sold in 2008 and there are two million games consoles with Blu-ray 11 capability in the UK.

See also: 19 •For more information about top films at the UK box office see Chapter 2 (page 12)

•For more information about the UK film market as a whole see Chapter 14 (page 108). 20

Chapter 11: Film on video – 93 21 Chapter 12: Film on UK television

The options for watching film Facts in focus • There were 5,873 unique film titles on television in 2008, on television have never been including 2,086 on terrestrial, 1,548 on the subscription greater, with digital channels film channels and 3,425 on the free-to-air film channels. now taking almost 40% of the • The 2,221 films (2,086 unique titles) on terrestrial channels included 505 UK films (23%) and 73 foreign UK television audience and language films (3%). offering access to a huge • The top film on terrestrial television was Harry Potter and number and variety of films. the Goblet of Fire on ITV1, with 7.7 million viewers. • There were 3.5 billion viewings of feature film across all Viewers had a choice of nearly television formats (except pay-per-view) in 2008 – up 6,000 titles across all channels 12% on 2007 and over 21 times the number of cinema admissions. in 2008. • The total audience for feature film across the non-subscription digital channels increased by 51% on 2007. • The average viewer watched 63 films on television in 2008. 1

12.1 Programming on network channels 3 Table 12.1 shows the number of feature films broadcast on the five terrestrial network channels in 2008 and the total number of UK titles broadcast in that time. These are broken down into older titles (more than eight years old) and recent theatrical releases (released in the last eight years). Here, UK film includes all titles listed as UK-originated by the 4 Broadcaster’s Audience Research Board (BARB), plus UK co-productions given other nationalities (mostly USA) in the BARB data. The number of films on terrestrial television increased by 2% on 2007 to 2,221, an average of six films a day. 5 The proportion of recent UK films increased from 6% to 7%, with BBC1 accounting for most of the increase.

6 Table 12.1 Feature films broadcast on network television, 2008 Recent UK Recent UK Number Number UK film (ie released as % of of films of UK films as % theatrically total films 7 Channel broadcast broadcast of total since 2000) broadcast BBC1 381 79 21 54 14.2 8 BBC2 395 121 31 34 8.6 ITV1 367 98 27 23 6.3 9 Channel 4 606 160 26 41 6.8 Five 472 47 10 10 2.1 Total 2,221 505 23 162 7.3 10

Source: Attentional, UK Film Council RSU analysis.

Network television screened 73 foreign language films in 2008, 3% of the total, up from 63 in 2007 (3% of the total), 11 as Table 12.2 shows. The top foreign language film was Pan’s Labyrinth, with an audience of 1.4 million on Channel 4.

12 Table 12.2 Foreign language films broadcast on network television, 2008 Number of foreign % Average language films of channel’s audience Top rated foreign Audience 13 Channel broadcast film output (million) language film (million) BBC1 6 1.6 0.6 Rumble in the Bronx 1.1 14 BBC2 17 4.3 0.1 Das Boot 0.5 ITV1 1 0.3 0.1 The Children of Heaven 0.1 15 Channel 4 46 7.6 0.1 Pan’s Labyrinth 1.4 Five 3 0.6 0.3 Big Boss 0.3 Total 73 3.3 0.2 16

Source: UK Film Council RSU.

Image: Harry Potter and the Goblet of Fire courtesy of Warner Brother Pictures Chapter 12: Film on UK television – 95 21 The number of slots for feature film on network television has fluctuated since 2003 as Figure 12.1 shows but Channel 4 has broadcast the most in four out of the six years.

Figure 12.1 Number of feature films on network television, 2003–2008

700

600

500

400

300

200

100

0 2003 2004 2005 2006 2007 2008 BBC1 432 434 356 367 384 381 BBC2 448 498 425 397 447 395 ITV1 310 270 373 183 243 367 Channel 4 587 506 563 580 595 606 Five 562 529 608 484 513 472 Total 2,339 2,237 2,325 2,011 2,182 2,221

Source: Attentional, UK Film Council RSU.

12.2 Peak time on network television The proportion of peak-time hours (18:00 to 23:59 hours) given over to films varied widely across the terrestrial channels. Film represented 19% of programming on BBC1, 7% on BBC2, 9% on ITV1, 16% on Channel 4 and 17% on Five (Figure 12.2). BBC1 and BBC2 both increased the proportion of peak-time hours devoted to film compared with 2007, with BBC1 having a particularly large increase, from 13% to 19%.

Figure 12.2 Composition of peak-time hours, 2008 Percentage 100 90 80 70 60 50 40 30 20 10 0 BBC1 BBC2 ITV1 Channel 4 Five Total Drama 20.3 5.4 35.0 13.6 31.1 20.7 Factual 15.0 44.1 14.2 38.9 27.1 28.2 Entertainment 13.5 15.8 18.0 13.0 12.9 14.5 News/current affairs 23.1 12.8 16.0 15.6 5.9 14.6 Films: Cinema 18.6 7.4 8.9 15.8 16.8 13.7 Sport 6.7 8.8 6.9 0.1 4.4 5.4 Other 2.3 5.7 1.0 2.7 0.1 2.4 Films: made for TV 0.5 0.1 0.0 0.2 1.7 0.5

Source: Attentional.

96 –UK Film Council Statistical Yearbook 2009 1

12.3. Audiences for film on network television 3 The average audience for a film shown on peak-time network television was 1.1 million on BBC1, 1.1 million on BBC2, 2.1 million on ITV1, 1.3 million on Channel 4 and 1.1 million on Five (Figure 12.3). Across all channels, the average audience was 1.3 million. This compares with median cinema admissions for the top 50 films of 4 approximately 1.7 million. Of the main programme categories, film accounts for the second-lowest average peak-time audience on BBC1 but performs relatively well on Channel 4 and Five, as shown in Figure 12.3. 5

Figure 12.3 Average peak-time audience, 2008 6 (000s) 7,000

6,000 7

5,000

4,000 8

3,000

2,000 9

1,000

0 BBC1 BBC2 ITV1 Channel 4 Five 10 Drama 6,039 1,526 6,514 1,546 1,544 Entertainment 4,457 1,792 4,041 1,755 236 Factual 3,460 1,791 2,621 2,052 803 11 Films: Cinema 1,056 1,081 2,112 1,306 1,094 Films: made for TV 640 94 – 270 2,263 News/current affairs 3,832 964 3,041 947 483 Other 2,801 910 716 479 1,060 12 Sport 3,222 1,524 3,667 221 832 All genres 3,713 1,544 4,318 1,607 993

Source: Attentional, BARB. 13

12.4 Top films on network television 14 The most popular film on terrestrial television was Harry Potter and the Goblet of Fire, with 7.7 million viewers tuning in to its premiere on ITV1 (Table 12.3). In theatrical audience terms, this is equivalent to a box office gross of £40 million (actual gross was £49 million). 15

Chapter 12: Film on UK television – 97 21 Table 12.3 Top 10 films on network television, 2008 Country of Year of TV audience Title Channel origin theatrical release (million) 1 Harry Potter and the Goblet of Fire ITV1 UK/USA 2005 7.7 2 Wallace and Gromit: The Curse of the Were-Rabbit BBC1 UK/USA 2005 7.5 3 Indiana Jones and the Last Crusade BBC1 USA 1989 7.5 4 Pirates of the Caribbean: Dead Man’s Chest BBC1 USA 2006 6.9 5 The Chronicles of Narnia: The Lion, the Witch and the Wardrobe BBC1 USA/NZ 2005 6.6 6 Charlie and the Chocolate Factory ITV1 UK/USA 2005 6.3 7 Bruce Almighty BBC1 USA 2003 5.8 8 Nanny McPhee ITV1 UK/USA 2005 5.8 9 Elf Channel 4 USA 2003 5.6 10 Indiana Jones and the Temple of Doom BBC1 USA 1984 5.6

Source: Attentional, BARB.

The top 10 UK films of 2008 (Table 12.4), included the premieres of Harry Potter and the Goblet of Fire, Wallace & Gromit: The Curse of the Were-Rabbit, Charlie and the Chocolate Factory, Nanny McPhee and Miss Potter.

Table 12.4 Top 10 UK-originated films on network television, 2008 Country of Year of TV audience Title Channel origin theatrical release (million) 1 Harry Potter and the Goblet of Fire ITV1 UK/USA 2005 7.7 2 Wallace and Gromit: The Curse of the Were-Rabbit BBC1 UK/USA 2005 7.5 3 Charlie and the Chocolate Factory ITV1 UK/USA 2005 6.3 4 Nanny McPhee ITV1 UK/USA 2005 5.8 5 Miss Potter BBC1 UK/USA 2006 5.3 6 Calendar Girls BBC1 UK/USA 2003 5.3 7 Harry Potter and the Prisoner of Azkaban ITV1 UK/USA 2004 4.5 8 Bridget Jones’s Diary BBC1 UK/USA 2001 3.9 9 Lara Croft Tomb Raider: The Cradle of Life BBC1 UK/USA 2003 3.7 10 Harry Potter and the Chamber of Secrets ITV1 UK/USA 2002 3.7

Source: Attentional, BARB, RSU analysis.

98 –UK Film Council Statistical Yearbook 2009 1

12.5 Films on multi-channel television 3 Table 12.5 shows the audience share for freeview/satellite/cable multi-channel television has continued to grow in the last few years. Multi-channel television accounted for 39% of the UK television audience in 2008, up from 37% in 2007. The biggest loss over this period was experienced by ITV1, which saw its audience share drop from 31% to 18%. 4

Table 12.5 Television percentage audience shares, 1999–2008 5 Year BBC1 BBC2 ITV1 Channel 4 FiveMulti-channel TV 1999 28.4 10.8 31.2 10.3 5.4 14.0 6 2000 27.2 10.8 29.3 10.5 5.7 16.6 2001 26.9 11.1 26.7 10.0 5.8 19.6 2002 26.2 11.4 24.1 10.0 6.3 22.1 7 2003 25.6 11.0 23.7 9.4 6.5 23.6 2004 24.7 10.0 22.8 9.7 6.6 26.2 8 2005 23.3 9.4 21.5 9.6 6.4 29.8

2006 22.8 8.8 19.6 9.8 5.7 33.3 9 2007 22.0 8.5 19.2 8.6 5.1 36.5

2008 21.8 7.8 18.4 8.2 5.0 38.8 10

Source: BARB.

Table 12.6 lists the number of films shown, average audience, the top film and audience for the top film for a 11 selection of the top subscription film channels and other digital channels which broadcast feature films. The various Sky Movie channels broadcast a total of 1,500 films across 39,238 slots. ITV 2, 3 and 4 more than doubled their film output from 823 in 2007 to 2,024 in 2008. 12

Chapter 12: Film on UK television – 99 21 Table 12.6 Feature film on selected digital channels (free and pay), 2008 Number of Average film Audience for Channel films broadcast audience Top film top film BBC3 119 445,768 Indiana Jones and the Last Crusade 1,538,600 BBC4 96 112,897 Overlord 407,200 Bravo 133 57,867 X-Men 200,700 Disney channels 776 20,528 Spy Kids 3D: Game Over 330,700 E4 131 271,269 I, Robot 946,800 Film 24 1,735 2,090 Jane Eyre 41,500 Film 4 2,423 134,597 This is England 1,105,600 Fiver 152 131,326 Daddy Day Care 440,700 Five US 289 133,686 Men in Black II 664,500 G.O.L.D. 231 157,685 Bruce Almighty 849,400 ITV2 – 4 2,024 219,281 Die Another Day 1,298,300 More 4 367 70,104 Heartbreak Ridge 432,400 Movies 4 Men 5,140 5,484 Pompeii 70,100 Sci Fi 913 39,087 Sword of Xanten 288,900 Sky 1-3 214 115,310 Batman Begins 601,900 Sky Movie channels 39,238 12,060 Night at the Museum 1,077,700 Turner Classic Movies 5,202 8,158 Ben Hur 116,800 Zone Horror/Zone Thriller 2,126 8,439 Prison 77,600

Source: Attentional, BARB, RSU analysis.

The top film on digital multi-channel was Love Actually on ITV2 with a total audience of 10.5 million from 20 transmissions (Table 12.7). The top film on the subscription film channels in 2008 was Casino Royale, which attracted a total audience of 4.15 million viewers from 112 transmissions on the Sky Movie channels (Table 12.8).

100 –UK Film Council Statistical Yearbook 2009 1

Table 12.7 Top 10 feature films on free-to-air digital multi-channel television, 2008 3 Country of Year of TV audience* Title Channel origin theatrical release (million)

1 Love Actually ITV2 UK/USA 2003 10,484,500 4 2 The Chronicles of Riddick ITV2 USA 2004 8,211,100

3 The Saint ITV2 USA 1997 7,279,600 5 4 The Bourne Supremacy ITV2 USA 2004 6,853,100 5 Pretty Woman ITV2 USA 1990 6,847,600 6 6 Die Hard 2 ITV2 USA 1990 6,636,100 7 Beverly Hills Cop ITV2/Sky 1+2 USA 1984 6,586,000 7 8 Jurassic Park III ITV2 USA 2001 6,072,400 9 The Day After Tomorrow Film 4/E4 USA 2004 5,746,100 8 10 Bridget Jones: The Edge of Reason ITV2 UK/USA 2004 5,508,900

Source: Attentional, BARB. *Audience figures refer to total audience for all transmissions in 2008. 9

Table 12.8 Top 10 feature films on subscription film channels, 2008 10 Country of Year of TV audience* Title Channel origin theatrical release (million)

1 Casino Royale Sky Movies UK/USA/Cze 2006 4,153,500 11 2 Night at the Museum Sky Movies USA 2006 3,969,700 3 Evan Almighty Sky Movies USA 2007 3,920,500 12 4 Hot Fuzz Sky Movies UK/USA 2007 3,753,500 5 Flushed Away Sky Movies UK/USA 2006 3,425,400 13 6 Die Hard 4.0 Sky Movies USA 2007 3,281,600 7 Shrek the Third Sky Movies USA 2007 3,205,100 14 8 Cars Sky Movies USA 2006 3,105,000 9 Ghost Rider Sky Movies USA 2007 3,052,200 15 10 Pirates of the Caribbean: Dead Man’s Chest Sky Movies USA 2006 2,858,600

Source: Attentional, BARB. *Audience figures refer to total audience for all transmissions of that film across all subscription film channels in 2008. 16

Chapter 12: Film on UK television – 101 21 12.6 The audience for film on all television channels 1999–2008 In order to compare the audiences for film on television with the number of admissions to UK cinemas, we have calculated the total audience for film broadcast on UK television since 1999 (see Figure 12.4). In 1999 there were 3.8 billion viewings of film on TV, compared with cinema ticket sales of 139 million. Despite the massive increase in the availability of titles with the introduction of digital television, the audience for film on television actually declined from 2003 to 2007. This was followed by a marked increase in film viewing in 2008 (+12%), boosted by an upsurge in multi-channel audiences with the total audience up 51% on 2007. However, the number of film viewings per person has declined since 1999 when the average person watched 69 films a year on terrestrial and multi-channel television, compared with 63 per person in 2008, despite the massive growth in choice via digital channels. Even so, this still represents 3.5 billion television viewings compared with cinema admissions of 164 million.

Figure 12.4 Total audience for feature film on television (except pay-per-view), 1999–2008 Million 4,500

4,000 3,500

3,000 2,500

2,000

1,500 1,000

500 0 19992000 2001 2002 2003 2004 2005 2006 2007 2008 Terrestrial 3,328 2,901 2,929 2,601 2,833 2,579 2,350 1,949 1,827 1,808 Subscription movie channels 502 647 673 741 820 734 671 634 490 489 Digital multi- channel 0 0 0 75 268 305 374 722 796 1,200 Total 3,830 3,548 3,602 3,417 3,921 3,618 3,395 3,305 3,113 3,497

Source: UK Film Council RSU, Attentional, BARB.

Figure 12.5 shows the total number of films shown on television since 1999. The steep rise in film showings to 2003 has since flattened but the 65,000 total in 2008 is more than four times greater than the 1999 figure of 15,200 films. The subscription film channels and digital multi-channel TV have driven this increase. In terms of unique film titles, there were 2,086 films broadcast on terrestrial, 1,548 titles on the subscription film channels and 3,425 on other digital channels. Overall, 5,873 individual film titles were shown across all TV channels in 2008.

102 –UK Film Council Statistical Yearbook 2009 1

Figure 12.5 The total number of films broadcast on all television channels (except pay-per-view), 1999–2008 3

70,000

60,000 4

50,000

40,000 5

30,000

20,000 6

10,000

0 19992000 2001 2002 2003 2004 2005 2006 2007 2008 7 Terrestrial 2,525 2,318 2,405 2,275 2,355 2,234 2,326 2,011 2,182 2,221 Subscription movie channels 12,684 36,547 40,277 46,720 52,552 47,499 47,698 44,346 34,737 40,014 8 Digital multi- channel 0 0 0 4,573 7,900 8,821 13,144 17,998 20,765 22,767 Total 15,209 38,865 42,682 53,568 62,807 58,554 63,168 64,355 57,684 65,002 9

Source: UK Film Council RSU, Attentional, BARB.

10 12.7 The value of feature film to broadcasters Based on a model developed by Attentional, we have estimated the value of feature film to UK broadcasters to be approximately £1,067 million in 2008. This figure is derived from the annual revenue per channel, that is net 11 advertising revenue for the commercial channels, subscription revenues for the pay channels and the proportion of licence fee applied to programming on the BBC channels, multiplied by the percentage of broadcast hours for feature film. 12

See also: 19 •For cinema admissions see Chapter 1 (page 6)

•For an overview of the film market as a whole see Chapter 14 (page 108). 20

Chapter 12: Film on UK television – 103 21 Chapter 13: Video on Demand

Video on Demand brings films Facts in focus • The total Video on Demand (VoD) and near-Video on direct to our television and Demand (nVoD) film market was estimated to be worth computer screens and, £120 million in 2008. increasingly, to our mobile • 12.6 million households were able to access television- based VoD and nVoD in 2008 with an estimated spend gadgets, whenever we choose. of £114 million. The sector is set to grow with • Over 16 million UK households had a broadband connection in 2008, but online film revenues remained advances in technology but low at £6.2 million. growth was modest in 2008. 1

13.1 Current size of the UK market 3 The Video on Demand (VoD) market is still very small and estimates of its actual size vary. Unlike the theatrical and video markets, there are no official statistics, but recent reports from Screen Digest and NPA Conseil/The European Audiovisual Observatory have attempted to quantify this emerging market. 4 The VoD market in the UK can be divided into television-based services and internet-based services. While cable TV and IPTV (Internet protocol TV) operators are able to offer a true-VoD service (in other words a system which streams content in real time from a server to the viewer), the leading satellite broadcaster, BSkyB, is only able to offer a near- 5 Video on Demand (nVOD) service, where multiple channels are used to show the same film at staggered times. Over 12 million UK households were able to access films via television, and the total television-based nVoD and VoD market was worth around £114 million in 2008. 6 According to Ofcom, over 16 million UK households (61% of the total) had a broadband connection in 2008, with the potential to view films online. Despite this level of broadband penetration, the online VoD market remained small 7 with estimated revenues of around £6.2 million. However, this has grown from £700,000 in 2007 thanks largely to the introduction of films on iTunes mid-way through 2008 and also on Xbox Live Marketplace. Services for portable devices and consoles are clearly leading the way here. 8 Screen Digest estimated that the combined value of the TV-based VoD and nVoD and internet-based market was worth £120 million in 2008, roughly 3% of the total UK filmed entertainment market. 9 13.2 Video on Demand services in the UK VoD services in the UK employ four basic types of economic model: 10 •Rental VoD – one-off rental, also known as download to rent; •Subscription VoD (SVoD) – unlimited access to content for a fixed monthly sum; 11 •Retail, in other words download-to-own (DTO) onto computer or portable device; •Free/advert-supported VoD. 12 The number of VoD film services in the UK has grown rapidly over the last year. At the time of writing (March 2009) 17 VoD film services could be identified compared with only six in mid-2007. Five of these services offered more than 1,000 film titles, compared to two in 2007. The leading VoD providers in the UK are described in Table 13.1. 13 Virgin Media and Sky are the market leaders in TV-based nVoD and VoD with over 11 million subscribers between them. Sky satellite subscribers are able to access nVoD films which can then be stored on personal video recorders (PVRs) through the Sky Anytime service. This then becomes a service with qualities similar to true-VoD. Virgin Media 14 cable subscribers are able to access a true-VoD service. Telecommunications companies in a number of countries are introducing Internet Protocol Television (IPTV) which delivers television services over a broadband internet connection. BT Vision, for example, offers major studio films as 15 part of its true-VoD IPTV offering. The UK is currently the only country in Europe to offer VoD on digital terrestrial television (DTT). Picturebox via Top Up 16 TV Anytime offers a limited number of titles available through a PVR. There are currently more than 14 million free- DTT households in the UK which could potentially access this service providing they had a compatible PVR.

As noted above, the growth of broadband has presented a major new distribution channel for films. iTunes has 17 emerged as the leading internet-based VoD service, with a 50% share of the online market in 2008, according to Screen Digest. In terms of release windows, the true-VoD television-based offering and download to rent are generally in line with 18 the nVoD window, that is films are usually available six to seven months after theatrical release. Download-to-own shares the same window as DVD retail (four months after theatrical release). However, there may be differences on a title-by-title basis. 19

Image: Twilight courtesy of E1 Films Chapter 13: Video on Demand – 105 21 Table 13.1 Leading VoD film services in the UK, 2008 Audience/ Content Economic potential Service Network Catalogue Prices providers model audience Apple iTunes Store Internet, 700 films £10.99 for new Disney, Paramount, VoD, DTO 16 million homes iPhone/iPod (100 in HD) releases; £6.99 Warner Bros and with broadband for library titles Lions Gate and iPhone/iPod (£1 extra for users HD films); rental VoD from £2.49 4oD Internet, IPTV Selection of Rental VoD Film Four, Rental VoD 16 million homes Film Four and from £1.99 20th Century Fox with broadband 20th Century and 4 million BT Fox titles Vision subscribers Lovefilm Internet 2,500 films Rental VoD Three major Rental VoD 16 million £2.99–£3.49 studios plus UK homes with independent broadband distributors Blinkbox Internet 3,000 films Rental VoD All major studios Rental VoD 16 million except Disney and DTO UK homes with broadband Xbox Live Marketplace Internet/IPTV 80 films £2.13–£4.08 Paramount, Rental VoD 3.4 million (16 in HD) per film Warner Bros, Xbox360 consoles Disney in the UK Jaman Internet 1,000 From £1.99 for Independent Rental VoD, 16 million rental VoD distributors DTO, Free homes with and Streaming broadband in UK Joost Internet and iPhone 1,200 features Free (advert- Paramount, Eros Advert- 16 million homes application and shorts supported) and independents supported with broadband streaming and iPhone users Channel Films Internet 500 features Download to rent Independents DTO, Rental, 16 million homes and shorts from £1.99, Streaming with broadband DTO from £4.99 Sky Player Internet 400 films Subscription All major studios Streaming 8.8 million Sky subscribers Coolroom Internet 500 films Rental VoD from Major studios and Rental VoD, 16 million £1.99; DTO independents DTO UK homes with from £4.99 broadband Go! View Internet Monthly Rental VoD from Universal Rental VoD 3.3 million PSPs selection £2.50 per title sold in UK iLoaded Internet 200 films From £5 for library Major studios and DTO 16 million homes titles; £10 for new independents with broadband releases Filmflex via Virgin Media Cable TV 500 films £2.50–£3.50 for All major studios Rental VoD 3.6 million new releases; except Fox. subscribers 50p – £2.00 for Independent library titles distributors including Pathé and Icon Sky Anytime Satellite/Internet TV 400 films £3.99 per film; All major US studios nVoD, VoD 8.8 million satellite (including HD) £16 per month for subscribers and SVoD Premium 1 million broadband Sky Movies subscribers

106 –UK Film Council Statistical Yearbook 2009 1

Table 13.1 Leading VoD film services in the UK, 2008 (continued) 3 Audience/ Content Economic potential Service Network Catalogue Prices providers model audience 4 Picturebox on Top-Up TV DTT 30 films £5.00 per month Universal SVoD 14 million per month; households with 7 rotated Freeview but weekly requires additional 5 PVR BT Vision IPTV 400 major £1.99–£3.95 All majors except Rental VoD, 4 million studio films per film Fox SVoD broadband 6 subscribers in UK Tiscali TV IPTV Over 1,000 From £1.99–£3.49 All major studios Rental VoD, 1.1 million Tiscali films per rental SVoD subscribers 7

Source: UK Film Council, Screen Digest, NPA Conseil/European Audiovisual Observatory.

8 13.3 Future prospects for the VoD market The main area of online growth in 2008 was around platforms which serve films directly to the television set and portable devices, such as those marketed by Apple (iPod/iTunes/Apple TV), Microsoft (Xbox 360) and Sony 9 (Playstation3/PSP). In addition to online distribution, the UK has a strong take-up of digital cable, satellite and DTT services and given user 10 familiarity with these services and consumer preference for watching films on television, this area is also likely to represent an important area of growth for the VoD market.

18 See also: •For more information on film on video see Chapter 11 (page 88) •For more information on film on television see Chapter 12 (page 94) 19 •For an overview of the film market as a whole see Chapter 14 (page 108).

Chapter 13: Video on Demand – 107 21 Chapter 14: The UK film market as a whole

New films typically establish Facts in focus • The total filmed entertainment market in the UK in 2008 their reputation in the cinema, is estimated to have been £3.7 billion. but less than 25% of the • In 2008, sell-through DVD/video was the largest single industry’s UK revenues come revenue source for film in the UK market, accounting for 39% of total revenues. from cinema exhibition. DVD • In 2008, the UK had the third-largest filmed entertainment sales and rentals account for market in the world after the USA and Japan. close to half of the market, • Film revenues in the UK declined in 2005 and 2006 but grew by 4.7% between 2006 and 2008. In 2008, while film on television theatrical revenues and revenues from film on retail generates significant revenue. video, television and video on demand all recorded increases. Only video rental decreased. This chapter looks at the UK film market as a whole over the period 1998 to 2008. 1

14.1 The UK filmed entertainment market as a whole 3 In 2007 and 2008, sell-through DVD/video was the largest single revenue source (Table 14.1), accounting for 39% of total revenues in 2008 (£1.4 billion). Theatrical revenues increased by 3.5% to £850 million, while rental revenues shrank from £297 million to £219 million. Gross television revenues increased by 7% from £994 million to 4 £1,067 million, particularly from film on multi-channel TV, though much of this accrued to the television industry rather than to the suppliers of film. The market share for UK films was highest for theatrical (31%) and lowest for film on near video on demand (nVoD) 5 where it was 15%. This reflects the strong theatrical performance of UK and UK/USA films in 2008 and the dominance of non-UK product on nVoD. 6

Table 14.1 UK filmed entertainment market, 2007 and 2008

Total gross value Attributable to Total gross value Attributable to 7 £ million UK films £ million £ million UK films £ million Window 2007 2007 2008 2008 Theatrical 821 234 850 261 8 DVD/video rental 297 53 219 53 Sell-through DVD/video 1,440 273 1,454 349 9 Pay TV 516 81 521 76 Terrestrial TV 254 63 257 60 10 ‘Free’ multi-channel TV 224 44 289 57 nVoD and VoD 92 14 120 29 11 Total UK 3,644 762 3,710 885

Sources: Nielsen EDI, MRIB, BVA, Official Charts Company, Attentional, Screen Digest, RSU analysis. Notes: 12 ‘Theatrical’ is the total gross UK theatrical revenues (including VAT) in the calendar years 2007 and 2008 for all films exhibited in the UK. See Chapter 1. ‘DVD/video rental’ is the total revenue from DVD/video rental transactions in the calendar years 2007 and 2008. See Chapter 11. ‘Sell-through DVD/video’ is the total revenue from DVD/video retail transactions in the calendar years 2007 and 2008. See Chapter 11. As a result of improvements in video retail data in 2007 and 2008, with title-by-title film value information becoming available, the retail video numbers for earlier years have been re-estimated and are therefore different from those presented in the 2008 Yearbook. 13 The television values are retail equivalent values calculated from the dataset of films shown on UK television. Values are estimated by multiplying the film share of the total channel time by the total revenue applicable to that channel (licence fee, subscription or advertising revenue). TV values cover terrestrial, subscription and free multi-channel. See Chapter 12. An estimate for pay-per-view is included in nVOD. Video on Demand and near-Video on Demand revenues are derived from Screen Digest estimates of the combined size of the TV and internet-based markets. UK share is 14 based on an estimate derived from knowledge of UK film share in the Pay TV and video markets. The above values are gross values and include exhibitor and distributor margins, VAT, prints and advertising costs, DVD/video retail margins, broadcaster and multi-channel TV operator margins in addition to net returns to the film production sector and film investors. The revenues shown here are revenues earned by film in the UK market, whether UK or foreign films. The table does not include export revenues for the UK film industry. 15 See Chapter 20 for UK film export revenues.

Image: The Duchess courtesy of Pathé Chapter 14: The UK film market as a whole – 109 21 14.2 The UK market in the global context In 2008, the UK had the third-largest filmed entertainment market in the world, after the USA and Japan (Table 14.2). The USA accounted for 42% of the world market. The next biggest individual territories after the UK were France, Germany, Canada, Australia and Italy. The world filmed entertainment market is still dominated by the largest developed economies. Although the Indian market is vast in terms of admissions and both India and China have huge populations and are growing fast economically, their filmed entertainment markets still count in US dollar terms below Australia (population 21 million) and Italy (population 59 million).

Table 14.2 Filmed entertainment revenues by country/region, US$ million, 2008 Revenue in Percentage Country/region US$ million of total USA 34,806 41.5 Japan 8,738 10.4 UK 6,504 7.7 Other Western Europe 5,555 6.6 France 3,806 4.5 Germany 3,548 4.2 Canada 3,437 4.1 Other Asia Pacific 2,561 3.1 Latin America 2,486 3.0 Australia 2,405 2.9 Central and Eastern Europe 2,169 2.6 Italy 1,922 2.3 India 1,759 2.1 Spain 1,602 1.9 South Korea 1,332 1.6 China 868 1.0 Middle East and Africa 427 0.5 Total 83,925 100.0

Source: PricewaterhouseCoopers, Global Entertainment and Media Outlook 2009–2013, June 2009. Note: In Table 14.2 ‘filmed entertainment revenue’ includes box office receipts, home DVD/video (rental and retail) and online download revenues. It does not include TV revenues.

The situation is forecast to change significantly by 2013 (Table 14.3). According to PricewaterhouseCoopers, India will by then be the seventh-largest individual territory, ahead of Australia, Italy and Spain. The USA is forecast to remain the largest single film territory (by a factor of four). The value of the Chinese market is expected to nearly double, but China’s forecast share of the global filmed entertainment market increases to only 1.6%.

110 –UK Film Council Statistical Yearbook 2009 1

Table 14.3 Filmed entertainment revenues by country/region, US$ million, forecast for 2013 3 Revenue in Percentage Country/region US$ million of total

USA 40,908 40.0 4 Japan 10,432 10.2

UK 8,336 8.2 5 Other Western Europe 6,316 6.2 France 4,363 4.3 6 Canada 4,227 4.1 Germany 4,083 4.0 7 India 3,427 3.4 Australia 3,111 3.0 8 Latin America 3,098 3.0 Central and Eastern Europe 3,035 3.0 9 Other Asia Pacific 3,020 3.0 Italy 2,246 2.2 Spain 1,775 1.7 10 South Korea 1,643 1.6 China 1,631 1.6 11 Middle East and Africa 514 0.5 Total 102,165 100.0 12

Source: PricewaterhouseCoopers, Global Entertainment and Media Outlook 2009–2013, June 2009. ‘Filmed entertainment revenue’ includes box office receipts, home DVD/video (rental and retail) and online and streaming revenues. It does not include TV revenues. Forecasts are in nominal US dollars at the average 2008 exchange rate and therefore do not estimate the impact of any changes in exchange rates between 2008 and 2013. 13

Chapter 14: The UK film market as a whole – 111 21 14.3 The evolution of UK film revenues 1998 to 2008 After strong growth in the early 2000s, aggregate film revenues fell in 2005 and 2006 (Figure 14.1). The chart shows a resumption of growth in 2007, as a result of increases in theatrical revenues and film on retail video. In 2008 revenues increased again, but this time mainly as a result of the increased value of film on television, reflecting the higher proportion of television time taken by film in 2008.

Figure 14.1 Gross film revenues, all windows, 1998–2008 £ million 4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Theatrical 547 563 583 645 755 742 770 770 762 821 850 Rental film 437 408 444 465 476 450 461 399 340 297 219 Retail film 453 451 601 821 1,175 1,392 1,557 1,399 1,302 1,440 1,454 Film on TV 726 755 826 954 1,066 1,182 1,119 1,089 1,066 994 1,067 VOD 16.5 19 31.8 44.1 48.6 57.6 59.8 63.8 71.7 92.2 119.4

Sources: Nielsen EDI, MRIB, BVA, Official Charts Company, DGA, Screen Digest, RSU analysis. ‘Film on TV’ covers terrestrial, subscription and free multi-channel. Pay-per-view is included within the VOD total. ‘VOD’ includes near Video on Demand (nVOD) and true Video on Demand. Retail video values for 2007 and earlier years have been re-estimated on the basis of improved title-by-title video retail value data that became available in 2008.

The revenues shown in Figure 14.1 are the actual figures. If adjusted for inflation using the recreational and cultural services price index (Figure 14.2), the decline in revenues in 2005 and 2006 is more marked. Real revenues in 2006 were 18% below the level of 2004. Real revenues dropped marginally between 2006 and 2008.

Figure 14.2 Gross inflation-adjusted film revenues, all windows, 1998–2008, expressed in 2005 pounds £ million in 2005 £ 4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Theatrical 688.9 687.4 695.7 752.6 829.7 788.5 798.8 770.0 728.5 754.6 758.3 Rental film 550.4 498.2 529.8 542.6 523.1 478.2 478.2 399.0 325.0 273.0 195.4 Retail film 570.9 551.1 717.7 957.9 1,291.4 1,478.9 1,615.1 1,399.1 1,244.3 1,323.6 1,297.1 Film on TV 914.4 921.9 985.7 1,113.2 1,171.4 1,256.1 1,160.8 1,089.0 1,019.1 913.6 951.8 VOD 20.8 23.2 37.9 51.5 53.5 61.2 62.1 63.8 68.6 84.7 106.5

Sources: Nielsen EDI, MRIB, BVA, Official Charts Company, DGA, Screen Digest, RSU analysis. Actual revenues deflated by the UK recreational and cultural services price index, using the year to December 2005 as the base. ‘Film on TV’ covers terrestrial, subscription and free multi-channel. Pay-per-view is included in the VOD total. ‘VOD’ includes near Video on Demand (nVOD) and true Video on Demand.

112 –UK Film Council Statistical Yearbook 2009 1

Previous UK Film Council research has identified piracy and competition from new media entertainments as two 3 factors influencing the revenue decline in 2005 and 2006 (see 2006/07 Statistical Yearbook, Chapter 13). Macro- economic factors were ruled out because the UK economy was growing steadily during the period in question, but the macro-economy may well influence the film market in 2009–2011 depending on how severely the ‘credit crunch’ 4 affects the supply of new films. There is evidence that the quality of films plays a part in the explanation. 2007 and 2008 were good years for quality big-box office films, whereas a number of films aspiring to high returns in 2005 and 2006 did not perform as well 5 as hoped.

14.4 The impact of recession 6 There are two possible ways recession might influence the film industry: by affecting the demand for filmed entertainment and, on the supply side, by diminishing the flow of film finance. 7 On the demand side, there is evidence that the theatrical film market is recession resistant. In each of the UK recessions of 1974–76, 1980–82 and 1990–93, cinema admissions stayed close to the long-term trend (up or down) of the period in question, (Figure 14.3). Similarly, up to the time of writing, the 2008/09 recession has not had a 8 negative impact on cinema admissions. Indeed, cinema admissions in both the UK and the USA have been strong since the acute phase of the ‘credit crunch’ began in October 2008. Market observers attribute this to three things: a good crop of films in 2008/09, a substitution effect as people scale back expenditure on expensive items such as 9 cars, overseas holidays and consumer durables, and an increased demand for escapism as a psychological response to the recession.

10 Figure 14.3 UK cinema admissions, 1970–2007 Millions 200 R1 R2 R3 11

150 12

100 13

0 1970 1975 1980 1985 19901995 2000 2005

Source: UK Film Council Research and Statistics Unit. Notes: R1 to R3=Recession periods 1 to 3. Trend line is given by fractional polynomial model of degree 3. 15 http://www.ukfilmcouncil.org.uk/theatrical

However, the credit crunch is reported to be having a serious impact on film financing. Hollywood has experienced a 16 decline in some of its sources of finance (eg hedge fund money) and there are reports that the UK independent sector is finding it harder to raise the finance for films. If these adverse financial conditions continue, the flow of films to market will be diminished, with a potential knock-on effect on film revenues in 2010–2012. 17 The main imponderables are film quality and the continuing digital revolution. Hollywood has begun making 3D films, which have demonstrated a capacity to enlarge audiences. Film revenues depend on a relatively small number of hits, so if filmmakers manage to make a good crop of films in 2009/10, this could potentially offset the effects of tight 18 financing. Finally, the speed of development of video on demand (and its competitor, film piracy) will influence the total size of film revenues over the next few years. 19 See also: •For information on the export revenues of the UK film industry, see Chapter 20 (page 168) •For more information on the video on demand market, see Chapter 13 (page 104). 20

Chapter 14: The UK film market as a whole – 113 21 Chapter 15: Audiences

Watching films is a national Facts in focus • In 2008, 60% (62% in 2007) of the UK population said pastime, with an average of they went to the cinema at least once a year. seven films seen per person per • 18% went to the cinema once a month or more. month, either in the cinema or • The cinema audience for the top 20 films in 2008 was on DVD or television. As might predominantly young, with the 7–34 age group (40% of the population) making up 64% of the audience. be expected, age, gender, • The younger age groups preferred comedy, musicals ethnicity and socio-economic and animated films while drama and musicals appealed status influence film preferences more to the over 35s. • Minority ethnic groups were equally or over-represented and the tendency to watch films in the film audience, except for retail DVD/video where at home or on the big screen– they were under-represented. and to download films for free. • Disabled people were under-represented in the film audience, except for retail DVD/video. This chapter shines a light on • Total ‘film-viewing occasions’ numbered over 4.7 billion, what audiences enjoy. which means an average of 84 film viewings per person in 2008. 1

15.1 Cinema audience by gender 3 Six out of ten of us went to the cinema at least once in 2008 (62% in 2007), roughly the same as last year. Almost one person in five, 18% (18% in 2007), went to the cinema once a month or more (Table 15.1). 4 The overall UK cinema audience in 2008 had a slight female bias for both the top 20 films and top UK films (Table 15.2). This is the result of the success of a number of musicals, most notably the all time highest grossing film in the UK, Mamma Mia!, and comedies with female leads such as Sex and the City (Table 15.3). 5

Table 15.1 Frequency of cinema visits by gender, 2008 Male % Female % Overall % 6 Go to the cinema at least once per year (proportion of population 7+) 60 60 60

Go to the cinema at least once a month (proportion of population 7+) 20 17 18 7

Source: CAA Film Monitor Jan-Dec 2008.

Table 15.2 Cinema audience by gender, 2008 8 2007 2008 Male % Female % Male % Female % 9 Top 20 films (proportion of audience) 52 48 49 51 Top UK films (proportion of audience)* 48 52 46 54 10 Total survey population 7+ 48 52 47 53

Source: CAA Film Monitor. *Audience data were only available for 19 of the top 20 UK films released in 2008. 11 Notes: 1. ‘Audience’ in this table and throughout this chapter refers to film-going occasions. That is, if a person went to the cinema to see 10 films in 2008, this person would have contributed 10 film-going occasions to the audience figures above, unless otherwise stated. Repeat visits to the same films are not recorded in CAVIAR Film Monitor. 2. CAA Film Monitor included 113 film titles (mostly popular) of the 527 theatrical releases in 2008. These 113 film titles accounted for 88% of the gross box office of the UK 12 and Republic of Ireland of the year. Film Monitor results are derived from a weekly nationally representative sample survey of 2000 adults aged 15+ across Great Britain, conducted for the CAA by BMRB.

15.2 Film preferences by gender 13 Although the overall cinema audience in 2008 was split almost evenly between men and women, some films attracted substantially more of one gender than the other (Table 15.3). Men preferred action (Iron Man, The Dark Knight, Quantum of Solace, Hancock), fantasy (Hell Boy II), comedy (Yes Man), drama (Adulthood) and adventure 14 (Indiana Jones and the Kingdom of the Crystal Skull and The Mummy: Tomb of the Dragon Emperor). Comedy (Penelope, Wild Child, Angus, Thongs and Perfect Snogging, Sex and the City and Juno), drama (The Other Boleyn Girl, The Boy in the Striped Pyjamas, The Duchess), and musicals (High School Musical 3, Mamma Mia!, Step Up 2) 15 with women in the leading roles figured highly in the list of films with large female audience shares. It is notable that seven out of the 11 films with predominantly female audiences were British (Table 15.3). 16

Image: Adulthood courtesy of Pathé Chapter 15: Audiences – 115 21 Table 15.3 Audience gender split of top performing Gender difference not statistically significant Male % Female % films released in the UK/Ireland, 2008 Top 20 films and top UK films Four Christmases 40 60 Greater female audience share Male % Female % The Spiderwick Chronicles 44 56 Penelope (UK) 10 90 Twilight 45 55 Wild Child (UK) 15 85 Chronicles of Narnia: Prince Caspian (UK) 47 53 Angus, Thongs and Perfect Snogging (UK) 16 84 Madagascar: Escape 2 Africa 48 52 Sex and the City 19 81 Wall-E 49 51 The Other Boleyn Girl (UK) 22 78 Sweeney Todd (UK) 50 50 High School Musical 3 24 76 How to Lose Friends and Alienate People (UK) 54 46 Mamma Mia! (UK) 25 75 Kung Fu Panda 55 45 The Boy in the Striped Pyjamas (UK) 29 71 Son of Rambow (UK) 58 42 The Duchess (UK) 29 71 In Bruges (UK) 64 36 Step Up 2 31 69 10,000 BC (UK) 65 35 Juno 38 62 Rocknrolla (UK) 68 32

Source: CAA Film Monitor. Notes: Greater male audience share Male % Female % 1. Because the CAA Film Monitor uses a sample survey to represent the UK population, a test for statistical significance has been applied to determine which titles can Iron Man 71 29 be described as having a greater male or female audience share. The smaller the audience for a particular film, the larger the male/female difference needed Hellboy II: The Golden Army (UK) 69 31 to be statistically significant. This is why some films with an apparently large male Yes Man 67 33 majority audience are listed under ‘gender difference not statistically significant’. A significance level, , of 0.01 is used in this chapter throughout. α Adulthood (UK) 66 34 2. Audience demographic data were available for 19 of the top 20 UK films released in 2008. Figures for one UK film are not reported here due to very low sample size. The Dark Knight (UK) 62 38 15.3 Cinema audience by age Quantum of Solace (UK) 61 39 Teenagers and young adults were the most frequent Indiana Jones and the Kingdom cinema-goers in 2008 (Table 15.4), a pattern common to of the Crystal Skull 61 39 previous years. The 40% of the population in the 7–34 The Mummy: Tomb of the Dragon Emperor 59 41 age group provided 64% of the top 20 film audience and 55% of the top UK film audience (Table 15.5). The younger Hancock 59 41 (aged under 35) audience had a male skew whereas the older audience had a female skew (Table 15.6). Figure 15.1 shows the age trends of cinema-goers from 1997–2007. The proportion of people aged 35 or above going to the cinema increased gradually at the expense of younger cinema-goers over this period. A report commissioned by the UK Film Council (The plateau in cinema attendances and drop in video sales in the UK: the role of digital leisure substitutes) found that the fall in younger cinema-goers coincided with a rapid rise in online entertainment and multi-channel TV, both of which may be substitutes for cinema and DVD watching. Available expenditure and time use surveys suggested there had been a substitution away from DVD into internet use, which was likely to have been particularly strong among 15–24 year olds.

116 –UK Film Council Statistical Yearbook 2009 1

Table 15.4 Frequency of cinema visits by age group, 2008 3 Age 7–14 % Age 15–24 % Age 25–34 % Age 35–44 % Age 45–54 % Age 55+% Overall % Go to the cinema at least once per year (proportion of 4 population 7+) 87 80 68 67 58 34 60 Go to the cinema at least 5 once a month (proportion of population 7+) 31 41 22 16 11 6 18

Source: CAA Film Monitor. 6

Table 15.5 Cinema audience by age group, 2008

Age 7–14 % Age 15–24 % Age 25–34 % Age 35–44 % Age 45–54 % Age 55+ % Total % 7 Top 20 films (proportion of audience) 19 27 18 17 9 10 100 8 Top UK films (proportion of audience) 14 26 15 17 12 16 100 Total survey population aged 7+ 11 14 15 17 13 30 100 9

Source: CAA Film Monitor. See notes to Table 15.2. 10 Table 15.6 Cinema audience by gender and age group, 2008 Age 7–14 % Age 15–24 % Age 25–34 % Age 35–44 % Age 45–54 % Age 55+ % Total % 11 Male 8 17 11 8 4 4 51 Female 8 15 8 8 5 6 49 12 Total 16 32 18 16 9 9 100

Source: CAA Film Monitor. Notes: 13 1. Some figures do not add up exactly to column totals due to rounding. 2. Figures include audiences for 113 film titles (mostly high grossing) of the 527 theatrical releases in 2008. These 113 film titles accounted for 88% of the gross box office of the UK and Republic of Ireland of the year.

Chapter 15: Audiences – 117 21 Figure 15.1 Age distribution of cinema-goers, 1997 to 2008 % 100 90 80 70 60 50 40 30 20 10 0 1997 1998 19992000 2001 2002 2003 2004 2005 2006 2007 2008 15–24 43 40 39 40 36 35 36 30 38 3834 36 25–34 29 29 29 27 25 27 26 27 19 2120 18 34–44 14 16 15 17 20 20 16 18 18 1719 16 45+ 14 15 17 16 19 18 22 25 25 2427 30

Source: CAA, National Readership Survey (NRS), Caviar, CAA Film Monitor. Note: Cinema-goers are defined as those who reported to have ‘ever gone’ the cinema in the surveys. Figures for any given year may have included audiences for a small number of titles released in the latter part of the previous year.

15.4 Film preferences by age Comedies, musicals, family films and animations appealed to the 7–14 audience (Table 15.7). Youth-themed drama, crime, action-led films and comedies appealed to the 15–24 age group (Table 15.8). Comedy and animation films appealed to the 25–34 audience (Table 15.9). Adventure and animated features appealed to the 35–44 audience (Table 15.10), some of whom would be parents taking their children to see them. Drama and musical as well as action-led films based on UK story material or created by UK talent appealed to the 45–54 age group (Table 15.11). Drama, musical and comedy films featuring British characters appealed to the over-55 age groups (Table 15.12). It is worth noting that three UK films (The Boy in the Striped Pyjamas, The Duchess and Mamma Mia!) had strong appeal to both of the older age groups. All but one film that appealed strongly to the two older age groups were UK films.

118 –UK Film Council Statistical Yearbook 2009 1

Table 15.7 Films with an above-average audience in Table 15.9 Films with an above-average audience in 3 7–14 age group, 2008 25–34 age group, 2008 Top 20 films and top UK films Top 20 films and top UK films Title Age group % of the film’s total audience Title Age group % of the film’s total audience 4 Penelope (UK) 42.0 How to Lose Friends and Alienate People (UK) 30.3 High School Musical 3 40.5 Sex and the City 25.9 5 Angus, Thongs and Perfect Snogging (UK) 39.2 Kung Fu Panda 22.9 The Spiderwick Chronicles 36.4 25–34 age group in top 20 and top UK audience (%) 17.2 6 Wild Child (UK) 34.1 25–34 age group in total survey population (%) 14.7

Madagascar: Escape 2 Africa 32.7 Source: CAA Film Monitor. Note: See footnote to Table 15.7. 7 Wall-E 31.9 Kung Fu Panda 30.3 Table 15.10 Films with an above-average audience in 35–44 age group, 2008 8 Step Up 2 28.0 Top 20 films and top UK films Chronicles of Narnia: Prince Caspian (UK) 27.4 Title Age group % of the film’s total audience 7–14 age group in top 20 and top UK audience (%) 18.7 The Mummy: Tomb of the Dragon Emperor 24.4 9 7–14 age group in total survey population (%) 11.1 Wall-E 22.1

Source: CAA Film Monitor. 35–44 age group in top 20 and top UK audience (%) 16.6 10 Note: Only those films that had a statistically significant higher than average audience in the above age group are reported in this table. 35–44 age group in total survey population (%) 16.7

Source: CAA Film Monitor. 11 Table 15.8 Films with an above-average audience in Note: See footnote to Table 15.7. 15–24 age group, 2008 Top 20 films and top UK films Table 15.11 Films with an above-average audience in 12 Title Age group % of the film’s total audience 45–54 age group, 2008 Adulthood (UK) 78.8 Top 20 films and top UK films Title Age group % of the film’s total audience Rocknrolla (UK) 62.9 13 The Boy in the Striped Pyjamas (UK) 26.4 Yes Man 56.4 The Duchess (UK) 23.8 Juno 52.1 14 Mamma Mia! (UK) 15.7 Four Christmases 49.1 Quantum of Solace (UK) 13.1 How to Lose Friends and Alienate People (UK) 49.0 15 45–54 age group in top 20 and top UK audience (%) 9.2 Twilight 47.0 45–54 age group in total survey population (%) 14.3 Wild Child (UK) 44.5 16 Source: CAA Film Monitor. Step Up 2 43.3 Note: See footnote to Table 15.7. Hancock 41.6 17 Iron Man 36.7 The Dark Knight (UK) 35.3 18 15–24 age group in top 20 and top UK audience (%) 28.1 15–24 age group in total survey population (%) 13.8 19 Source: CAA Film Monitor. Note: See footnote to Table 15.7.

Chapter 15: Audiences – 119 21 Table 15.12 Films with an above-average audience in 55+ age group, 2008 Top 20 films and top UK films Title Age group % of the film’s total audience The Duchess (UK) 44.5 Mamma Mia! (UK) 33.0 In Bruges (UK) 32.1 The Other Boleyn Girl (UK) 31.2 The Boy in the Striped Pyjamas (UK) 30.4 Indiana Jones and the Kingdom of the Crystal Skull 13.7 55+ age group in top 20 and top UK audience (%) 10.3 55+ age group in total survey population (%) 29.4

Source: CAA Film Monitor. Note: See footnote to Table 15.7.

15.5 Cinema audience by social group The cinema audience for both the top 20 films and top UK films had a higher incidence of people in professional and higher-skilled manual occupations than in the population as a whole (Tables 15.13 and 15.14).

Table 15.13 Frequency of cinema visits by social group, 2008 AB % C1 % C2 % DE % Overall % Go to the cinema at least once per year (proportion of population 7+) 72 67 56 44 60 Go to the cinema at least once a month (proportion of population 7+) 23 21 16 13 18

Source: CAA Film Monitor.

Table 15.14 Cinema audience by social group, 2008 AB % C1 % C2 % DE % Overall % Top 20 films (proportion of audience) 30 35 19 16 100 Top UK films (proportion of audience) 33 35 17 15 100 Total survey population 7+ 25 29 21 25 100

Source: CAA Film Monitor. Note: AB: Professional, business and white collar, C1: Higher-skilled manual, C2: Lower-skilled manual, DE: ‘Semi-’ and ‘Un-skilled’ manual.

15.6 Film preferences by social group Four films had a particularly high appeal to the AB audience (compared with five last year): The Duchess, The Boy in the Striped Pyjamas, Quantum of Solace and Mamma Mia!, all four being certified UK films (Table 15.15). Five films including two UK features, Penelope, Step Up 2, Adulthood, High School Musical 3 and The Mummy: Tomb of the Dragon Emperor, appealed to the DE audience (Table 15.16). No film was found to have significantly strong appeal to the C1 and C2 audience groups.

120 –UK Film Council Statistical Yearbook 2009 1

Table 15.15 Films with above-average AB audience Table 15.17 Ethnicity of audiences aged 12+ for 3 share, 2008 cinema, rental and retail DVD/video, PPV, 2008 Top 20 films and top UK films Black, Asian, Chinese, mixed Title AB group % of film’s total audience and other % White % 4 The Duchess (UK) 49.7 Population aged 12+ 8.7 91.3 The Boy in the Striped Pyjamas (UK) 45.7 Buyers of cinema, rental, retail and PPV film 8.4 91.6 5 Quantum of Solace (UK) 35.8 Cinema-goers 12.8 87.2 Mamma Mia! (UK) 34.3 DVD/video buyers 7.5 92.5 6 AB share of top 20 and top UK audience (%) 30.3 DVD/video renters 11.4 88.6 AB in total survey population (%) 24.7 PPV buyers 16.1 83.9 7 Source: CAA Film Monitor. Source: TNS. Note: See footnote to Table 15.7. Note: Fieldwork took place in April/May 2008. Purchase data for 52 weeks ending 4 Jan 2009. Table 15.16 Films with above-average DE audience 8 share, 2008 Table 15.18 Size of cinema, rental, retail and PPV Top 20 films and top UK films markets for 12+ age groups, 2008 Title DE group % of film’s total audience Market 9 Number of volume Penelope (UK) 30.1 persons/buyers (millions of (millions) purchases) Step Up 2 27.5 10 Population aged 12+ 48.3 n/a Adulthood (UK) 27.0 Total buyers: cinema, rental, High School Musical 3 25.9 retail and PPV film 33.7 502.7 11 The Mummy: Tomb of the Dragon Emperor 25.3 Cinema-goers 31.1 161.0 DE share of top 20 and top UK audience (%) 16.7 DVD/video buyers 25.9 238.4 12 DE in total survey population (%) 25.3 DVD/video renters 8.7 91.3 Source: CAA Film Monitor. PPV 3.3 11.9 Note: See footnote to Table 15.7. 13 Source: TNS. 15.7 Film audiences by ethnicity As in 2007 there was a common core of films that were 14 Once again, minority ethnic groups were over- popular across the main ethnic groups, but certain titles represented among buyers of cinema tickets, rental films had stronger appeal to particular groups, as illustrated in and pay-per-view (PPV) and under-represented among Table 15.19, which shows the top 10 films for the black, 15 buyers of DVDs/videos (Table 15.17). It is notable that white and Indian and other Asian ethnic groups. The minority ethnic shares were down in all markets, except Dark Knight, I Am Legend and Indiana Jones and the PPV, compared with 2007. The overall minority ethnic Kingdom of the Crystal Skull were among the top 10 16 share in all four markets was 8.4%, down from 9.3% in favourite films of all three ethnic groups. 2007. For reference, the size of each of these markets as measured in the TNS survey is shown in Table 15.18. Mamma Mia! and National Treasure 2 appear in the white population’s top 10 but in neither of the other top 10s. 17 Jumper appears in black people’s top 10 but did not get into the top 10 lists of the other groups. The Mummy:

Tomb of the Dragon Emperor appears in the Indian and 18 other Asian group but did not make it into the top 10 lists in the other groups. Sex and the City and Sweeney Todd were among the favourites for white and black audiences 19 but did not appear in the Indian and other Asian audience’s top 10.

Chapter 15: Audiences – 121 21 Table 15.19 Top films by ethnicity of audience, 2008 Rank White Black Indian and other Asian 1Mamma Mia! Hancock The Dark Knight 2Indiana Jones and the Kingdom of the Crystal Skull The Dark Knight Hancock 3I Am Legend I Am Legend I Am Legend 4The Dark Knight Indiana Jones and the Quantum of Solace Kingdom of the Crystal Skull 5Quantum of Solace The Incredible Hulk Indiana Jones and the Kingdom of the Crystal Skull 6Hancock Sex and the City The Mummy: Tomb of the Dragon Emperor 7Wall-E Iron Man Kung Fu Panda 8Sex and the City Jumper The Incredible Hulk 9Sweeney Todd Sweeney Todd Iron Man 10 National Treasure 2 Cloverfield Wall-E

Source: FAME. Note: ‘White’ includes those who identified themselves as British, Irish and mixed white. ‘Black’ means the sum of black Caribbean, black African and ‘black other’ groups. ‘Indian and other Asian’ is the sum of Indian, Pakistani, Bangladeshi and other Asians. Other ethnic groups have not been shown separately due to small sample sizes. Some titles were released in late 2007.

15.8 Film audiences by disability As in the previous four years, disabled people were under-represented overall among those who paid to watch films. Retail DVD/video was the only market segment in which disabled purchasers matched their overall population percentage (Table 15.20). The overall share of audiences with disabilities across all markets was slightly down from 13% in 2007 to 12% in 2008.

Table 15.20 Disabled audiences aged 12+ for cinema, rental and retail DVD/video, PPV, 2008 Disabled % Not disabled % Population aged 12+ 14.9 85.0 Buyers of cinema, rental, retail and PPV film 12.0 88.0 Cinema-goers 6.2 93.8 DVD/video buyers 15.3 84.7 DVD/video renters 6.1 93.9 PPV buyers 2.3 97.7

Source: TNS.

122 –UK Film Council Statistical Yearbook 2009 1

15.9 Film preferences by region Table 15.24 Films with above-average Tyne 3 Tees/Yorkshire audience share, 2008 The regional distribution of the audiences for most top Top 20 films and top UK films 20 and top UK films was close to that of the top 20 Title Tyne Tees /Yorkshire % of film’s total audience audience as a whole. Seven titles had unusually high 4 audience shares in particular nations or regions: High School Musical 3 20.2 Adulthood in London (Table 15.21), Wild Child in the TT/Yorkshire share of top 20 and top UK audience 14.8 South East (Table 15.22), Chronicles of Narnia: Prince 5 Caspian in the Midlands (Table 15.23), High School TT/Yorkshire percentage of total survey population 17.3 Musical 3 in Tyne Tees/Yorkshire (Table 15.24) and Juno, Source: CAA Film Monitor. How to Lose Friends and Alienate People and Twilight in Note: See footnote to Table 15.7. 6 Scotland (Tale 15.25). The UK Film Council supported the production of two Table 15.25 Films with above-average Scotland of the titles that had particularly high regional appeal – audience share, 2008 7 Adulthood (New Cinema Fund) and How to Lose Friends Top 20 films and top UK films and Alienate People (Premiere Fund). Adulthood also Title Scotland % of film’s total audience received support from the Council’s Prints and Juno 19.9 8 Advertising Fund for its distribution in the UK. How to Lose Friends and Alienate People (UK) 18.3 Table 15.21 Films with above-average London audience Twilight 14.2 9 share, 2008 Scotland share of top 20 and top UK audience 8.4 Top 20 films and top UK films Scotland percentage of total survey population 8.8 10 Title London % of film’s total audience Adulthood (UK) 34.0 Source: CAA Film Monitor. Note: See footnote to Table 15.7. London share of top 20 and top UK audience 22.4 11 15.10 Film downloads from the Internet London percentage of total survey population 19.8 In 2008, the Cinema Advertising Association (CAA) Source: CAA Film Monitor. 12 Note: See footnote to Table 15.7. continued to commission an annual online survey of people who had been to the cinema in the six months prior to the Table 15.22 Films with above-average South East survey. Known as FAME (Film Audience Measurement and 13 audience share, 2008 Evaluation), the survey included questions about film Top 20 films and top UK films downloads from the Internet. The proportion of respondents who reported downloading at least one film for free from Title South East % of film’s total audience the Internet in 2008 was up slightly to 17% from 14% in 14 Wild Child (UK) 31.5 2007 (12% in 2006) with some changes across the age South East share of top 20 and top UK audience 16.6 groups (Figure 15.2). 15 South East percentage of total survey population 17.0 People in the 15–24 age group continued to be most active at ‘unpaid-for’ film downloading. However, their Source: CAA Film Monitor. reported level of activity had dropped slightly to 27% (30% Note: See footnote to Table 15.7. in 2007) while there were large increases in the 7–14 and 16 25–34 age groups to 13% (6% in 2007) and 23% (18% in Table 15.23 Films with above-average Midlands 2007) respectively. At the time of the survey (November audience share, 2008 2008) the online video on demand (VoD) market remained 17 Top 20 films and top UK films small (see Chapter 13) so it is likely that a high proportion Title Midlands % of film’s total audience of these reported film downloads were from illicit sources. Chronicles of Narnia: Prince Caspian (UK) 24.5 18 Midlands share of top 20 and top UK audience 16.7 Midlands percentage of total survey population 16.0 19

Source: CAA Film Monitor. Note: See footnote to Table 15.7. 20

Chapter 15: Audiences – 123 21 Figure 15.2 Unpaid-for film downloading by age of UK cinema-going population, 2007 and 2008 % 35

0 7–14 15–24 25–34 35–44 45–54 55+ 2007 6 30 18 13 10 9 2008 13 27 23 15 12 7 Source: CAA FAME 2 and 3 (for 2007 and 2008). Note: The question asked in the survey was “Have you ever downloaded a film for free off the Internet?” In 2008, the question was amended to exclude short video clips.

Respondents in the FAME survey were also asked whether they had ever watched any newly-released film outside the cinema. Overall, 19% (20% in 2007, 24% in 2006) reported they had done so while, again, the 15–24 age group reported the highest rate of having watched a newly-released film outside the cinema (Figure 15.3).

Figure 15.3 Watching a newly-released film outside the cinema by age of UK cinema-going population, 2007 and 2008 % 35

0 7–14 15–24 25–34 35–44 45–54 55+ 2007 16 33 24 20 17 11 2008 13 28 27 17 14 9 Source: CAA FAME 2 and 3 (for 2007 and 2008). Note: The question asked in the survey was “Have you ever watched a newly released film anywhere but the cinema?”

124 –UK Film Council Statistical Yearbook 2009 1

15.11 Comparative profiles of cinema audiences and audiences for film on television 3 Table 15.26 compares the audience profiles for film at the cinema and film on television. Although the gender split is roughly equal in each case, there is a dramatic difference in the age and social group profiles of the two audiences. The film on television audience is much older (39% over the age of 55) and skewed towards the DE social group and 4 away from the AB group. The cinema audience is relatively youthful (66% under the age of 35) and skewed towards the AB and C1 social groups. Given the 3.5 billion size of the audience for film on television (Chapter 12), Table 15.26 demonstrates how film reaches all ages and social groups through its successive release windows. 5

Table 15.26 Profile of cinema audience and audience for film on television, 2008 6 Share of audience for Cinema audience share % film on television % Male 51 49 7 Female 49 51 Age 7–14 (cinema) and 4–15 (TV) 16 7 8 15–24 (cinema) and 16–24 (TV) 32 8 25–34 18 11 9 35–44 16 17 45–54 918 10 55+ 939 AB 29 15 C1 35 24 11 C2 19 21 DE 17 40 12

Source: Attentional, CAA Film Monitor, RSU analysis. Note: TV audience is total viewing occasions and includes those of the five terrestrial TV channels only. 13

Chapter 15: Audiences – 125 21 15.12 Cinema-goers’ preferences by age for cinema, DVD and television Table 15.27 shows the frequency with which cinema-goers visited the cinema as compared with watching television and watching and buying DVDs. The results shown here are based on the FAME 2008 online survey whose respondents had all been to the cinema in the six months prior to the survey. Watching television was the most prevalent activity across the whole age range, with the most frequent viewers skewed towards the 35+ group. The frequency of DVD-watching overall was substantially higher than cinema visiting, but with a similarly youthful age skew. Frequent DVD-watching was particularly common in the 7-14, 15-24 and 25-34 age groups whereas the proportion of frequent DVD-buyers was lower in the latter age group.

Table 15.27 Frequency by age of cinema-goers watching and buying DVDs, going to the cinema and watching television, 2008 Age 7–14 % 15–24 % 25–34 % 35–44 % 45–54 % 55+ % Total % Watch DVD once a month or more 94 82 81 81 72 61 79 Watch DVD once a week or more 66 46 44 41 27 22 42 Bought DVD once a month or more 42 40 34 39 29 16 34 Bought DVD once a week or more 4754114 Go to cinema once a month or more 50 54 44 37 35 30 42 Go to cinema once a week or more 4562224 Watch TV 2 hours or more on a weekday 76 65 77 83 86 90 79 Watch TV 5 hours or more on a weekday 6 14 13 15 19 20 14 Watch TV 2 hours or more at the weekend 95 78 86 93 93 94 90 Watch TV 5 hours or more at the weekend 4557745

Source: CAA Film Audience Measurement and Evaluation (FAME) 3 (for 2008). Note: The figures in Table 15.27 are based on the online panel survey FAME which represents the UK online population aged 15 or above who had been to the cinema in the previous six months. Hence, the figures in this table are not the same as those for the whole UK population shown in Table 15.1.

126 –UK Film Council Statistical Yearbook 2009 1

15.13 Total size of film audience in the UK 3 The total size of the film audience in the UK in 2008 was estimated to be 4.7 billion, calculated from all the sources available (Table 15.28). Over 70% of the total was the audience for film on television. This was followed by DVD/video (22%) and cinema at 3%. Film-watching via pay-per-view or other VoD formats represented a small fraction of the 4 total audience in the year. The figures do not include watching film from illicit sources.

Table 15.28 Estimated total audience for film in the UK – all modes, 2008 5 Audience size % of total Mode (millions) film audience 6 Cinema 164 3 DVD/video 1,040 22 7 VoD (including pay-per-view) 40 1 Film on television 3,497 74 Total 4,741 100 8

Sources: CAA, Nielsen EDI, FAME, TNS, Screen Digest, Attentional, RSU analysis. Notes: 1. ‘DVD/video’ includes occasions watching previously-purchased feature film DVD/videos as well as current purchases. The DVD/video estimate is derived from FAME survey 9 information on the DVD-watching habits of cinema-goers with an additional estimate for the population not covered by FAME. 2. ‘Film on television’ includes terrestrial, subscription and free-to-air multi-channel.

10 Taking the total film-viewing figure of 4.7 billion occasions and dividing it by an estimated viewing population (excluding the very young), there were 84 film viewing occasions per person in 2008, an average of seven films per month. 11

17 See also: •For more information about top films at the box office in 2008 see Chapter 2 (page 12) 18 •For further details about films on DVD see Chapter 11 (page 88) •For further information about film on television see Chapter 12 (page 94) •For more information about film exhibition regionally see Chapter 10 (page 76) 19 •For the report on the impact of new digital leisure activities, The plateau in cinema attendances and drop in video

sales in the UK: the role of digital leisure substitutes, see www.ukfilmcouncil.org.uk/audiences. 20

Chapter 15: Audiences – 127 21 Chapter 16: Films certified as British 1998–2008

One of the criteria for accessing Facts in focus • A total of 104 UK films (154 in 2007) received final film tax relief is that a film certification as British films in 2008. Of these, 97 were must be certified as ‘British’. Schedule 1 films and seven were co-productions. To qualify, a film must pass • The total production budget of finally certified Schedule 1 films rose 67% to £935 million in 2008 (£561 million either the Cultural Test under in 2007). Schedule 1 of the Films Act • The number of co-productions receiving final certification continued to fall sharply from 56 in 2007 1985, or be certified under one to only seven in 2008. of the UK’s bilateral co-production • The level of official co-production activity in 2008 was agreements or under the a fraction of what it was at its peak in 2004. European Convention on Cinematographic Co-production. This chapter reports British film certification statistics from 1998 to 2008. 1

16.1 Qualifying as an official British film 3 The Secretary of State for Culture, Media and Sport (DCMS) is responsible for issuing British Film Certificates on the basis of recommendations made by the UK Film Council’s Certification Unit. Makers of certified British films can apply for tax relief on qualifying films or apply for Lottery funding from the UK Film Council and other sources. There is 4 more information about public investment in film in Chapter 18. Schedule 1 films are films certified as British under Schedule 1 of the Films Act 1985. To qualify, films starting principal photography on or after 1 January 2007 must pass a UK Cultural Test. Points are awarded for UK elements in the story, 5 setting and characters and for where and by whom the film was made (see the links at the end of the chapter for details of the Cultural Test). 6 Under the old rules, the main qualifying criterion was a minimum 70% UK spend. During a transitional period in 2007, films receiving final certification were certified under the old Schedule 1 test, a transitional Cultural Test (32 points) and the revised Cultural Test (31 points). For films commencing principal photography from 2007 onwards, the 7 31 point test applies and is referred to as the Cultural Test hereafter. A wide range of films has qualified as British under the Cultural Test, from Brideshead Revisited to Slumdog Millionaire.

Films can also qualify as British if they are certified under the various official UK co-production agreements. Official 8 co-productions must be certified by the competent authorities in each country as meeting the certifying criteria, which include the creative, artistic, technical and financial input from each co-producer. Once certified, a film counts as a national film in each of the territories and may qualify for public support on the same basis as national films in 9 that territory. On the basis of recommendations made by the UK Film Council, the Secretary of State grants ’interim approval’ prior to the start of principal photography to those films that meet the criteria and ’final certification’ once the film has been completed and final documents submitted. British films made as official co-productions are not 10 required to pass the Cultural Test. At the time of writing the UK has seven active bilateral treaties with Australia, Canada, France, India, Jamaica, New Zealand and South Africa. Official UK co-productions can also be certified under the European Convention 11 on Cinematographic Co-production of which the UK is a signatory.

16.2 Schedule 1 films 2008 12 In 2008, a total of 97 films (98 in 2007) were finally certified British under Schedule 1 (19 under the transitional

Cultural Test and 78 under the Cultural Test), as Table 16.1 shows. While the total production budget rose 67% 13 to £935.4 million from £561.4 million in 2007, the median budget of a Schedule 1 film fell from £1.21 million to £0.99 million in 2008.

14 Table 16.1 Number and production budget of finally certified Schedule 1 films by type of test, certification years 2007 and 2008 2007 2008 15 Budget Budget Type of Schedule 1 test Number (£ million) Number (£ million) Old Schedule 1 test 54 122.9 16 Transitional Cultural Test (32 points) 5 125.5 19 218.8

Cultural Test (31 points) 39 313.0 78 716.6 17 Total 98 561.4 97 935.4

Median 1.21 0.99 18

Source: DCMS, UK Film Council.

Interim certificates can be issued under the Cultural Test, of which there were 123 in 2008 (114 in 2007). The total 19 production budget of the interims fell by 21% to £890.2 million (£1,129.6 million in 2007) while the median budget also fell from £2.1 million to £1.5 million in 2008. Note that an interim certificate is not a prerequisite to receiving a final certificate under the Cultural Test, nor does every film that receives an interim certificate necessarily progress 20 to a final certificate.

Image: Happy-Go-Lucky courtesy of Momentum Pictures Chapter 16: Films certified as British 1998–2008 – 129 21 Table 16.2 Number of Schedule 1 (Cultural Test) interim certificates issued and production budget, certification years 2007 and 2008 2007 2008 Number of interim certificates issued 114 123 Production budget (£ million) Total 1,129.6 890.2 Median 2.08 1.48

Source: DCMS, UK Film Council.

16.3 Official UK co-productions 2008 Official co-productions have declined significantly in the last three years. Table 16.3 shows that there were only seven final certifications in 2008 (a fall of 88% from 56 in 2007), with a total investment value of £39.8 million (an 89% drop from £356.7 million in 2007). Four of the seven co-productions in 2008 were certified under the European Convention. The remaining three films qualified under the bilateral agreements with Australia, France and New Zealand.

Table 16.3 Final certifications of official UK co-productions by year of certification, 2006–2008 Investment (£ million) Year certified Number Total Median 2006 68 459.5 4.40 2007 56 356.7 4.37 2008 739.83.68

Source: DCMS, UK Film Council.

Interim approvals reflect the anticipated level of production activity over the coming year and onwards. Table 16.4 shows that in 2008 most of the interim approvals (10 out of 16) were, as in previous years, under the European Convention on Cinematographic Co-production. The number of interim approvals continued to fall sharply. The number halved from 55 in 2006 to 27 in 2007, and nearly halved again to 16 in 2008. The anticipated total investment fell to £108.9 million (28% of the 2006 total of £389 million).

130 –UK Film Council Statistical Yearbook 2009 1

Table 16.4 Interim approvals of UK co-productions by treaty and total investment, certification years 2006–2008 3 Treaty 2006 2007 2008 European Convention 41 18 10 4 UK bilateral agreement Australia 13 5 Canada 652 France 4 Italy* 2 6 New Zealand 1 1 Norway* 2 7 South Africa 11

Total 55 27 16 8 Investment (£ million)

Total 389.0 142.6 108.9 9 Median 5.12 3.82 4.52

Source: DCMS, UK Film Council. 10 *UK bilateral treaties with Italy and Norway terminated.

16.4 All films certified as British 1998–2008 11 The number of certified UK films (Schedule 1 and co-production films receiving final certification) rose gradually from 56 in 1998 to a peak in 2005 when 172 British films were certified (Figure 16.1). In 2008 only 104 films were certified 12 as British. The production value of British films peaked at £1,822 million in 2004 when 171 British films were certified (Figure 16.2). The rise was mainly due to a surge in the number of official UK co-productions in the early 2000s. The increase coincided with a falling proportion of UK expenditure associated with these productions. In 2004/05 a series of cooling measures designed to restore balance in co-production relations were introduced by the DCMS and 13 Her Majesty’s Revenue and Customs (HMRC). The level of official co-production activity has since fallen back to the pre-2000s level as is evident from Figures 16.1 and 16.2. 14

Chapter 16: Films certified as British 1998–2008 – 131 21 Figure 16.1 Number of finally certificated (Schedule 1 and co-production) UK films, certification years 1998–2008 No. certifications (final) 180

160

140

120

100

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Schedule 1 40 70 108 75 77 76 72 66 74 98 97 Co-production 16 13 22 41 56 84 99 106 68 56 7

Source: DCMS, UK Film Council. Notes: Co-production figures include both bilateral and European Convention finals.

Figure 16.2 Total production value of finally certified (Schedule 1 and co-production) UK films, certification years 1998–2008 Total production value (£ million) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Schedule 1 232 421 361 538 585 330 644 758 402 561 935 Co-production 60 66 95 278 462 428 1,178 877 460 357 40

Source: DCMS, UK Film Council. Notes: Total production value is total budget for Schedule 1 films and total investment for co-productions. Co-production figures include both bilateral and European Convention finals.

132 –UK Film Council Statistical Yearbook 2009 1

Figure 16.3 shows the levels of UK spend over the same period. UK spend is generally the production budget spent 3 in the UK (see notes to Figure 16.3). At its peak in 2005, UK spend reached £1,022 million whereas in 2008 it was £620 million. Although over half of the total production value was attributed to co-productions at the peak of 2004, the UK spend of the co-productions was less than that of the Schedule 1 films. The UK spend attributed to 4 co-productions has continued to fall since.

Figure 16.3 UK spend of finally certified (Schedule 1 and co-production) UK films, certification years 1998–2008 5 UK spend (£ million) 1,200

6 1,000

800 7 600

400 8

200

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 9

Schedule 1 151 278 292 459 522 293 560 685 341 442 589

Co-production 23 22 38 88 132 127 443 337 183 123 31 10

Source: DCMS, UK Film Council. Notes: ‘UK spend’ is the ‘value of the production activities in the UK’ for Schedule 1 films and is ‘UK expenditure’ for co-productions (bilateral and European Convention). The UK spend for co-productions may include some expenditure on UK goods and services which took place outside the UK. 11

16 See also:

•For UK film production, see Chapter 17 (page 134) 17 •For UK film economy, see Chapter 20 (page 163) •For public investment in film in the UK see Chapter 18 (page 146) 18 •For quarterly updates on British film certification data, see spreadsheet under ‘UK films’ in the Research section of the UK Film Council website: www.ukfilmcouncil.org.uk/ukfilms •For more information about British films, tax relief and the Cultural Test, see www.ukfilmcouncil.org.uk/qualifying 19 •For more information on the European Convention on Cinematographic Co-production, see the Council of Europe

website: http://conventions.coe.int (number 147 under the full list of treaties). 20

Chapter 16: Films certified as British 1998–2008 – 133 21 Chapter 17: Film production in 2008

2008 saw a fall in production Facts in focus • Total UK production activity in 2008 was activity, largely because the £578 million, compared with £753 million in 2007. high exchange rate deterred • The UK spend associated with inward investment inward investment and the US features was £338 million, down from £523 million in 2007. writers’ and actors’ disputes • There were 66 UK domestic features (68 in 2007) and delayed production. However, 20 UK co-productions (28 in 2007). the UK spend on domestic • The median budget for UK domestic features rose slightly, but was less than the median budget levels of films rose by 21%. This chapter 2003–2005. looks at trends since 1992. •Thirteenbig budget films accounted for 57% of the total UK production spend in 2008. • UK domestic films and UK co-productions were shot in fewer countries than in 2007. • US studios were involved with 19 productions in the UK in 2008 and accounted for 83% of the UK spend associated with inward investment features. 1

17.1 The value of UK production in 2008 3 UK production activity fell by 23% in 2008, to £578.2 million, from £753.3 million in 2007. The fall was mainly due to the reduction in inward investment, which was restrained by the high value of the pound for most of the year and the writers’ and actors’ disputes in the USA. 4 There were 25 inward investment productions in 2008, with a UK production value of £338.2 million (see Table 17.1 for definitions). Some of the big budget films contributing to this figure were Prince of Persia: The Sands of Time, Quantum of Solace, The Wolfman, Nine and The Fantastic Mr Fox. 5 There were 66 UK domestic features in 2008, down slightly from 68 in 2007, with a UK production value of £192 million which was 21% up on the 2007 figure. Larger budget films contributing to this total included 6 The Boat that Rocked, Green Zone, Dorian Gray, London Dreams, Creation and Me and Orson Welles. UK co-productions fell from 28 to 20 with their UK spend falling from £72.2 million to £47.8 million. This continues the downward trend established in 2004 and reflects a tightening of co-production qualification rules and the 7 effect of the new UK film tax incentive, which applies to UK spend rather than the total budget of the film. UK co-productions in 2008 included Solomon Kane, Cheri, Bright Star, Nine Miles Down, Looking for Eric and The Boys are Back in Town. 8

Table 17.1 Feature film production activity, 2007 and 2008 9 Number of Value Number of Value productions £ million productions £ million 2007 2007 2008 2008 Inward investment feature films 30 523.0 25 338.2 10 Domestic UK feature films 68 158.2 66 192.2

UK co-productions 28 72.2 20 47.8 11 Total 126 753.3 111 578.2

Source: UK Film Council. 12 Notes: Numbers have been revised on the basis of new information received since the publication of the 2008 Statistical Yearbook. Inward investment includes three films in 2007 (£5.9 million) and nine films in 2008 (£17.7 million) that involved only VFX work in the UK. Inward investment feature films include three non-USA films in 2007 and two non-USA films in 2008. 13

Definitions 1. An inward feature is defined as a feature film which is substantially financed and controlled from outside the UK and where the production is attracted to the UK because of script requirements, the UK’s infrastructure or UK tax incentives. 14 2. An inward feature co-production is an official co-production that originates from outside the co-production treaty countries (usually from the USA) and which is attracted to the UK because of script requirements, the UK’s infrastructure or UK tax incentives (none were made in 2007 and 2008). 3. A domestic (indigenous) UK feature is a feature made by a UK production company that is produced wholly or partly in the UK. 4. A UK co-production is a co-production (other than an inward co-production) involving the UK and other country partners usually under the terms of a bilateral co-production agreement or the European Convention on Cinematographic Co-production. 15

Measurement 5. The above numbers include only the UK spend associated with productions shot or post-produced in whole or part in the UK. 6. Spend is allocated to the year in which principal photography started or to the year in which the visual effects were undertaken in the case of VFX-only films. 16

Exclusions 7. Spending on films with budgets under £500,000 is not included. 17

Image: Bright Star courtesy of Pathé Chapter 17: Film production in 2008 – 135 21 17.2 Inward, domestic and UK co-production features 1992–2008 Figure 17.1 and Table 17.2 put the 2008 figures in a longer time perspective. The decline in domestic features between 1997 and 2004 occurred alongside a substantial growth in co-production activity, suggesting it was easier at that time to make films as official co-productions than as stand-alone UK productions. From 2005 to 2008 this trend was reversed, reflecting a tightening in co-production certification requirements followed by the introduction of the new UK film production tax relief based on UK spend rather than the whole production budget of the film. Minority co-productions saw the greatest reduction. The number of inward features in 2008 was smaller than in 2007 but close to the average for the decade 1999–2008. Overall, production numbers continued at the higher level achieved after the introduction of tax relief and Lottery support for film in the mid-1990s.

Figure 17.1 Number of inward, domestic, UK co-production and total features, 1992–2008 Number of features 180

160

140

120

100

0 92 93 94 95 96 97 98 99 00 01 02 03 0405 06 07 08

Inward 8 15 13 14 25 20 16 22 28 23 16 28 20 48 28 30 25 Domestic 22 25 33 34 73 84 67 70 52 51 37 43 28 50 56 68 66 UK co-production 66 93 85 65 51 28 20 Total 30 40 46 48 98 104 83 92 80 74 119 164 133 163 135 126 111

Source: UK Film Council. Notes: Inward features include inward investment co-productions from 2002. UK co-productions not available by shoot date prior to 2002. Data for 2003–2007 updated since publication of the 2008 Yearbook. Inward features include a spike in the number of non-USA (mainly Indian) inward investment films in 2005.

136 –UK Film Council Statistical Yearbook 2009 1

Table 17.2 Number of inward, domestic, UK co-production and total features, 1992–2008 3 Of which, majority Co-production and parity Minority Inward Domestic Total co-pros co-pros Total 4 1992 8 22 30 1993 15 25 40 5 1994 13 33 46 1995 14 34 48 6 1996 25 73 98 1997 20 84 104 7 1998 16 67 83 1999 22 70 92 8 2000 28 52 80 2001 23 51 74 2002 16 37 66 119 9 2003 28 43 93 20 73 164 2004 20 28 85 18 67 133 10 2005 48 50 65 12 53 163 2006 28 56 51 18 33 135 11 2007 30 68 28 16 12 126

2008 25 66 20 9 11 111 12

Source: UK Film Council. Notes: Inward features include inward investment co-productions from 2002. 13 UK co-productions not available by shoot date prior to 2002. Data for 2003–2007 updated since publication of the 2008 Yearbook. Majority co-production means a co-production in which the UK investment is the largest single national investment (not necessarily an absolute majority). Parity co-production means a co-production in which the UK and at least one other country contributed equal largest investments. 14 Minority co-production means a co-production in which at least one other country made a larger investment than the UK.

The value of UK production in 2008 fell by 23.3% compared with 2007, but was still the fifth highest year over the period recorded (Figure 17.2 and Table 17.3). In 2008, 58% of the UK spend was accounted for by inward investment 15 productions showing the importance of inward investment to the UK film economy. Since 1997, the fluctuation in production value has principally been driven by inward features and 2008 was no exception, with the whole of the reduction a result of the 35% fall in inward investment. This was influenced by the high value of the pound for most 16 of 2008 (Figure 17.3) and the writers’ and actors’ disputes in the USA which delayed a number of productions.

Chapter 17: Film production in 2008 – 137 21 Figure 17.2 Value of UK spend of inward, domestic, UK co-production and total features, 1992–2008 Value of UK spend £ millions 1200

1000

800

600

400

200

0 92 93 94 95 96 97 98 99 00 01 02 03 0405 06 07 08

Inward 58.50 127.74 182.65 216.45 387.10 261.90 214.20 336.37 366.57 198.50 265.86 716.96 548.49 306.45 558.68 522.95 338.16 Domestic 39.98 30.34 59.51 94.00 172.20 202.89 174.96 170.31 211.70 180.12 156.36 258.33 118.54 177.70 157.41 158.20 192.20 UK co-production 128.23 150.52 144.00 97.27 109.21 72.19 47.82 Total 98.48 158.08 242.16 310.45 559.30 464.79 389.16 506.68 578.27 378.62 550.45 1,125.81 811.03 581.42 825.30 753.34 578.19

Source: UK Film Council. Notes: Inward features include inward investment co-productions from 2002. UK co-productions not available by shoot date prior to 2002. Data for 2003–2007 updated since publication of the 2008 Yearbook. Table 17.3 Value of UK spend of inward, domestic, UK co-production and total features, 1992–2008 Of which, Co-production majority and Minority Inward Domestic Total parity co-pros co-pros £ Total (£ million) (£ million) (£ million) (£ million) (£ million) (£ million) 1992 58.50 39.98 98.48 1993 127.74 30.34 158.08 1994 182.65 59.51 242.16 1995 216.45 94.00 310.45 1996 387.10 172.20 559.30 1997 261.90 202.89 464.79 1998 214.20 174.96 389.16 1999 336.37 170.31 506.68 2000 366.57 211.70 578.27 2001 198.50 180.12 378.62 2002 265.86 156.36 128.23 550.45 2003 716.96 258.33 150.52 58.98 91.54 1,125.81 2004 548.49 118.54 144.00 40.72 103.28 811.03 2005 306.45 177.70 97.27 34.63 62.64 581.42 2006 558.68 157.41 109.21 66.10 43.11 825.30 2007 522.95 158.20 72.19 51.96 20.23 753.34 2008 338.16 192.20 47.82 32.46 15.36 578.19

Source: UK Film Council Notes: See notes to Figure 17.2. See notes to Table 17.1 for definitions.

138 –UK Film Council Statistical Yearbook 2009 1

The competitiveness of the UK as a destination for internationally mobile film production is significantly affected by 3 the UK pound-US dollar exchange rate. When the value of the pound in US dollars increases, film production in the UK becomes more expensive and US producers may choose to stay at home or go to third countries where costs and exchange rates are more favourable. Conversely if the value of the pound falls, the UK becomes more competitive. 4 Figure 17.3 shows that the value of the pound in US dollars rose significantly (by about 17%) between January 2006 and the peak in November 2007. Given the lead time in putting film productions together, this was a significant disincentive for locating US productions in the UK in 2008. The historically high dollar-pound rate (peaking at $2.07 5 in November 2007) continued until July 2008, when the dollar began to appreciate as a result of the intensification of the credit crunch. The last time the dollar-pound rate was at or above $2.07 was in May 1981. The average dollar-pound rate for the 6 period 1981 to 2008 was $1.65.

7 Figure 17.3 Value of £ sterling in US dollars, 2006–2008 US$ 2.2 8

2.0

1.8 9

1.6

1.4 10

1.2 11 1.0 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07Oct-07 Jan-08Apr-08 Jul-08 Oct-08 Jan-09 £ Sterling in US$

Source: Bank of England. 12

Chapter 17: Film production in 2008 – 139 21 17.3 Productions by genre, 2006–2008 Table 17.4 and Figure 17.4 show a breakdown of UK production by genre for the years 2006–2008. UK production is reasonably well spread across genres and does not appear to be as over-concentrated on drama as sometimes supposed. While drama accounted for 25% of the films, it only absorbed a tenth of the budget. If the high-spending genres of fantasy, action and adventure are removed from the table, drama’s share of the remaining UK spend rises to around 20%, which is higher than drama’s share of the box office (generally 5–10%) but still leaves 80% of UK spend being applied to other genres.

Table 17.4 Genre of UK production, 2006–2008 Genre Number of films % of total Budget % of total UK spend % of total £ million £ million Action 33 8.9 1,114.6 29.4 451.6 20.9 Adventure 13 3.5 366.7 9.7 230.7 10.7 Animation 10 2.7 145.1 3.8 83.0 3.8 Biopic 15 4.0 146.1 3.8 85.6 4.0 Comedy 69 18.5 507.4 13.4 278.5 12.9 Crime 20 5.4 149.3 3.9 94.7 4.4 Documentary 16 4.3 18.6 0.5 11.0 0.5 Drama 95 25.5 362.4 9.5 243.7 11.3 Fantasy 7 1.9 340.7 9.0 293.8 13.6 Horror 34 9.1 155.7 4.1 128.0 5.9 Musical 6 1.6 104.0 2.7 62.3 2.9 Romance 14 3.8 83.9 2.2 40.6 1.9 Sci-fi 5 1.3 74.9 2.0 11.7 0.5 Thriller 29 7.8 151.7 4.0 88.0 4.1 Other 6 1.6 74.9 2.0 53.7 2.5 Total 372 100.0 3,796.1 100.0 2,156.8 100.0

Source: UK Film Council. The data have been presented for a three year period to show as many genres as possible without disclosing the budgets of individual films. The category ’other’ contains family and war films, grouped because of their low numbers.

140 –UK Film Council Statistical Yearbook 2009 1

Figure 17.4 Numbers and UK spend of UK production by genre, 2006–2008 3 % 30

25 4

20 5 15

10 6

7 0

Crime Other Sci-fi Action Biopic Drama Horror Thriller Comedy Fantasy Musical Adventure Animation Romance Documentary 8 % of films 8.9 3.5 2.7 4.0 18.5 5.4 4.3 25.5 1.9 9.1 1.6 3.8 7.8 1.6 1.3 % of total UK spend 20.9 10.7 3.8 4.0 12.9 4.4 0.5 11.3 13.6 5.9 2.9 1.9 4.1 2.5 0.5 9 Source: UK Film Council.

17.4 Budget trends 10 The median budget of domestic UK features rose slightly in 2008 from £1.6 to £1.7 million, though Table 17.5 reveals downward pressure on UK domestic budgets in recent years. The median budget for inward investment films was 11 £17.2 million, a similar level to 2004–2006. The median budget for co-productions returned to £4 million after its dip to £3.2 million in 2007.

12 Table 17.5 Median feature film budgets £ million, 2003–2008 Production category 2003 2004 2005 2006 2007 2008 Inward features (single country) 13.1 16.5 16.0* 18.6 7.9 17.2 13 Inward features (co-productions) 46.9 38.1 25.4 51.9 – – Domestic UK productions 2.9 2.7 2.0 1.6 1.6 1.7 14 Co-productions (other than inward) 3.5 4.3 4.3 4.0 3.2 4.0

Source: UK Film Council. 15 Median budget is the middle value (ie there are equal numbers of films above and below the median). The median in this case is a better measure of central tendency than the average as it avoids the upward skew of a small number of high budget productions. Data for 2003–2007 updated since publication of the 2008 Yearbook. *The inward features (single country) median budget for 2005 is USA only. There were 24 inward features (India) in 2005 with a median budget of £1.2 million. For other 16 years the numbers of inward features (non-USA) were too small to be tabulated separately (the data would be disclosive). The dip in the inward investment median budget to £7.9 million in 2007 is due to an unusually large number of low-budget USA inward investment films that year.

Chapter 17: Film production in 2008 – 141 21 17.5 Size distribution of budgets Table 17.7 Size distribution of budgets, domestic UK features, 2008 The budget size distribution for the three main categories Total of films made in 2008 is shown in Tables 17.6 to 17.8. Six budget % features with budgets of over £30 million accounted for in band of total 81% of the aggregate budget for inward features (single Budget band Number (£ million) budget country). Six out of 16 inward investment features had £10 million+ 4 94.4 42.9 budgets of less than £10 million. £5 million–£10 million 2 17.4 7.9 £2 million–£5 million 18 55.8 25.4 Table 17.6 Size distribution of budgets, inward features (single country), 2008 £0.5 million–£2 million 42 52.3 23.8 Total Total 66 219.9 100.0 budget % in band of total Budget band Number (£ million) budget Source: UK Film Council. The two films with budgets more than £30 million are not shown separately as the £30 million+ 6 407.5 81.0 data would be disclosive. £10 million–£30 million 4 67.5 13.4 There were no UK co-productions in the £30 million+ Under £10 million 6 28.3 5.6 range (Table 17.8). Half of UK co-productions were in the budget range £2 million–£10 million (10 out of 20) and Total 16 503.3 100.0 this range accounted for 57% of the total budget. Co-

Source: UK Film Council. productions in the £10 million–£30 million band dropped from five to two with a corresponding drop in this band’s Unlike 2004–2007, there were two domestic UK features share of the total budget. In other words, co-productions in 2008 with budgets over £30 million. Another two had became more concentrated in the lower budget bands. budgets in the £10 million–£30 million band. Most domestic UK features had budgets under £5 million. Table 17.8 Size distribution of budgets, There was a marked reduction in UK domestic features in UK co-productions (other than inward), 2008 the £5 million–£10 million budget range and significant Total growth in numbers and aggregate budget in the budget % £0.5 million–£2 million and £2 million–£5 million bands, in band of total consistent with anecdotal evidence. Budget band Number (£ million) budget £30 million+ 0 0.0 0.0 £10 million–£30 million 2 35.8 33.6 £5 million–£10 million 6 45.2 42.3 £2 million–£5 million 4 16.2 15.1 £0.5 million–£2 million 8 9.5 9.0 Total 20 106.7 100.0

Source: UK Film Council.

142 –UK Film Council Statistical Yearbook 2009 1

17.6 Big-budget productions 2003–2008 3 The importance to UK spend of a small number of big-budget productions – most of which are inward investment films – is demonstrated in Table 17.9. In 2008, the 13 films with budgets of £30 million or more accounted for 57.4% of total UK production spend. 4

Table 17.9 Big-budget films’ contribution to UK spend, 2003–2008 5 2003 2004 2005 2006 2007 2008 Number of films with budgets >=£30 million 15 8 7 11 10 13 6 Value of associated UK spend (£ million) 672.2 432.4 151.6 487.0 412.2 331.8 Total UK spend (£ million) 1,125.8 811.0 581.4 825.3 753.3 578.2 Big-budget film share of UK spend 59.7% 53.3% 26.1% 59.0% 54.7% 57.4% 7

Source: UK Film Council. Data for 2003-2007 updated since publication of 2008 Yearbook. 8

17.7 UK share of expenditure 9 Table 17.10 shows the UK expenditure shares for inward investment films, domestic UK productions and co- productions (other than inward). Domestic productions had the highest UK expenditure share (87.4%), followed by inward investment films at 63.7%. Co-productions (other than inward) had the lowest UK expenditure share of 44.8%. However, as in 2007, this was significantly higher than in 2003-2004, reflecting a sharp fall in the number of 10 low-UK-spend co-productions following the shift to allowing tax relief on UK spend rather than on the full budget.

11 Table 17.10 UK expenditure shares, 2008 Inward investment films 63.7% 12 Domestic UK productions 87.4% Co-productions (other than inward) 44.8% 13 Source: UK Film Council.

17.8 UK domestic productions by territory of shoot 14 Table 17.11 analyses UK domestic productions in 2008 according to whether they were wholly or partially shot in the UK, or wholly shot abroad. The majority (50 out of 66) were shot exclusively in the UK, while 16 films were shot partly abroad. No UK domestic films were shot wholly abroad. The non-UK spend as a proportion of budget (12.6%) 15 decreased somewhat compared with 2007 (18.6%).

16 Table 17.11 UK domestic productions, territory of shoot analysis, 2008 Non-UK spend Budget Non-UK spend as % of Shooting in… Number of films (£ million) (£ million) total budget 17 UK only 50 120.8 1.7 1.4

UK and other 16 99.1 26.0 26.2 18 Other only 0–––

Total UK domestic films 66 219.9 27.7 12.6 19

Source: UK Film Council.

Chapter 17: Film production in 2008 – 143 21 Table 17.12 shows the territories of shoot of UK domestic Co-productions were also less internationally dispersed in films. Because some films were shot in two territories, the 2008 than they were in 2007, being shot mainly in the total number of shoots is greater than the total number UK, Europe and Australia (Table 17.14). Outside the UK, of films. Compared to 2007, the range of countries and the most frequent country locations were France (6), number of non-UK shoots was smaller. There were two Germany (3), Ireland (3) and Australia (3). shoots in India and one each in China, Brazil and France. It appears that UK producers were less geographically Table 17.14 UK co-productions by territory or region of adventurous in 2008 than the year before. shoot, 2008 Country Number of shoots Table 17.12 UK domestic productions by territory of shoot, 2008 UK 20 Territory of shoot Number of shoots France 6 UK 66 Eastern Europe 5 India 2 Nordic area 4 China 1 Germany 3 Brazil 1 Ireland 3 France 1 Western Europe (other) 3 Total shoots 71 Australia 3

Source: UK Film Council. Canada 1 South Africa 1 17.9 UK co-productions by territory of shoot Turkey 1 In contrast to UK domestic productions, UK co- Total shoots 50 productions were usually shot partly or wholly abroad, as Source: UK Film Council. Table 17.13 shows. Only four out of 20 films, with a total Note: All the co-productions were shot in at least two territories, hence the total in budget of £10.9 million, were shot wholly in the UK. Table 17.14 is more than twice the number of UK co-productions in 2008. Non-UK spend accounted for 55.2% of the aggregate budget of UK co-productions in 2008. 17.10 Production company activity levels Table 17.13 UK co-productions, territory of shoot UK film production in 2008 was, as usual, dispersed analysis, 2008 over a large number of production companies, as Non-UK shown in Table 17.15. The UK Film Council recorded 202 spend production companies associated with films shot in the Non-UK as % Number Budget spend of total UK or co-productions involving the UK in 2008. Of these, Shooting in… of films (£ million) (£ million) budget 185 companies were associated with a single feature. These were a mixture of distinct production companies UK only 4 10.9 2.4 21.7 and special purpose vehicles (that is, companies set UK and other 7 70.2 42.0 59.9 up to make a single film). The most prolific production Other only 9 25.6 14.5 56.5 companies (Revolution Films and Matador Pictures) were associated with four features each, followed by Total UK 20 106.7 58.9 55.2 five companies with three films each and 10 companies co-productions with two films each.

Source: UK Film Council.

144 –UK Film Council Statistical Yearbook 2009 1

Table 17.15 Film production company activity, 2008 17.11 US studios’ involvement 3 Number of features in inward features per company Number of companies The US studios were involved in the production of 4219 films in the UK in 2008 (nine of these VFX only) 4 35(Table 17.16). The US studios accounted for 17 out of 25 inward features in 2008 and £282 million (83.4%) 2 10 out of £338.2 million UK spend associated with inward 5 1 185 features (see Table 17.1). Total 202 Table 17.16 US studios’ involvement in inward 6 Source: UK Film Council. Notes: features, 2008 Includes all production categories. Studio Number of inward features in 2008 Further information on film production companies in the UK can be found in 7 Chapter 19. Universal 7 Films frequently have several production companies associated with them (including special purpose vehicle subsidiaries of parent companies), so the sum of (number of Walt Disney 3 features) x (number of companies) is substantially greater than the total number of 8 features involving the UK in 2008. 20th Century Fox 2 Columbia Pictures 2 Sony and Sony/MGM 2 9 Paramount 2 Warner Bros 1 10 Total films 19

Source: UK Film Council. 11 Nine of the above films involved only VFX in the UK. Two were UK domestic films produced by Working Title under its output deal with Universal.

See also: 18 •Information about film companies is given in Chapter 19 (page 154) •For details about employment in the film production sector see Chapter 21 (page 172) •For more information about the UK film economy see Chapter 20 (page 163) 19 •For information on film production in the UK prior to 1992, see the annual Film and Television Handbooks

published by the British Film Institute or the Information Briefings on the BFI’s website – www.bfi.org.uk 20

Chapter 17: Film production in 2008 – 145 21 Chapter 18: Public investment in film in the UK

The UK Government provides Facts in focus •Total measured public funding for film in the financial financial support to film in year 2007/08 was £261 million. the UK through a variety of • The principal sources of public funding for UK film in channels. Additional funding 2007/08 were the film production tax relief, National Lottery and grant-in-aid from central government, comes from the European particularly via the Department for Culture, Media Union. This chapter shows and Sport. the sources of funding, the • The European Union provided £17.1 million in 2007/08. • Her Majesty’s Revenue and Customs (HMRC) and the UK amounts spent by each Film Council were responsible for the largest gross film organisation and the spend (£105 million and £70.6 million respectively). activities supported, from film • Film production took 56% of the total spend, but distribution and exhibition, training and skills, production to film archives. education, and archives and heritage also received substantial allocations. 1

18.1 Public funding for film in the UK by source 3 Public funding for film in the UK comes from a number of UK Government, public sector and European sources, including: 4 •The Department for Culture Media and Sport (DCMS); •Other central government departments; •The governments of Scotland, Northern Ireland and Wales; 5 •The National Lottery; •Her Majesty’s Revenue and Customs (HMRC); 6 •BBC Films;

•Film4; 7 •The European Union.

Public funding for film identified in Table 18.1 is estimated to have been £261 million in the financial year 2007/08. 8 The total is likely to have been higher still, as the estimate does not include some local authority, research council, higher or further education and project match funding, as indicated in the notes to Table 18.1. The largest single source of public funding was the UK film tax relief, estimated to have provided £105 million in 9 2008, 40% of the total. The second largest source was the National Lottery (£50.8 million, 19% of the total) and the third largest was the DCMS grant-in-aid to the UK Film Council and National Film and Television School (£29.1 million, 11% of the total). The National and Regional Development Agencies provided £14.6 million, BBC Films £12.5 million 10 (up from £10 million in 2006/07) and the European Union MEDIA Programme £11.5 million (£4.6 million in 2006/07).

Image: In The Loop courtesy of Optimum Releasing Chapter 18: Public investment in film in the UK – 147 21 Table 18.1 Public funding for film in the UK by source, 2007/08 Amount Source £ million % of total Notes National Lottery Distribution 50.8 19.5 National Lottery allocations to the UK Film Fund (DCMS) – Film Council, Scottish Screen and Northern Ireland Screen, plus Heritage Lottery Fund(1) DCMS grant-in-aid to the 29.1 11.2 Awards to the UK Film Council (of which UK Film Council and NFTS £16.1 million was awarded to the BFI) and National Film and Television School National and Regional 14.6 5.6 Contributions to the National and Regional Development Agencies Screen Agencies BBC Films 12.5 4.8 BBC Films’ production investment and contributions by the BBC to NFTS and N/RSA projects – excludes acquisitions etc made by other BBC departments EU MEDIA Programme 11.5 4.4 European Union MEDIA Programme(2) Film4 10.2 3.9 Film4 (Channel 4’s film production company) investment in film development and production plus Channel 4 investment in NFTS and N/RSA projects Other European Union 5.6 2.1 European Regional Development Fund and European Social Fund Northern Ireland Executive 4.6 1.8 Includes spend from all Northern Ireland government agencies into strategic bodies/projects Department for Children Schools 4.5 1.7 DCSF investment in the Mediabox scheme. and Families Match funding in individual Mediabox projects (and other First Light projects) is not collated Welsh Assembly Government 3.3 1.3 Includes spend from all Welsh government agencies into strategic film bodies/projects Scottish Government 3.3 1.3 Includes spend from all Scottish government agencies into strategic bodies/projects Department for Innovation Universities and Skills 1.8 0.7 Awards to Screen Academies, Skillset and N/RSAs

148 –UK Film Council Statistical Yearbook 2009 1

Table 18.1 Public funding for film in the UK by source, 2007/08 (continued) 3 Amount Source £ million % of total Notes

Higher Education Funding Council 1.3 0.5 HEFC investment in Screen Academies and 4 a small number of projects by strategic agencies(3) Ofcom 0.9 0.3 Contribution to BFI National Archive 5 for television Foreign and Commonwealth Office 0.9 0.3 Funding for UK-originated British Council 6 activity. Excludes partnership funding of ‘in country’ events (outside the UK)

Arts Councils 0.7 0.3 Awards from national Arts Councils to film 7 agencies(4) Local Government 0.3 0.1 Comprises investment by local authorities in N/RSA activities 8 Dept for Business Enterprise & 0.03 0.0 Award to Film London for film export support Regulatory Reform 9 Local authority direct spend n/a n/a Data on local government investments in cinemas, youth activity, film offices etc. are not collated 10 Other education and research n/a n/a Figures not collated for investment in university courses not part of the Screen Academy network, further education film 11 courses and film-related research awards from research councils 12 Total public sector selective investment 155.9 59.8 National Lottery and grant-in-aid from all sources as above

UK film production tax relief (HMRC) 105.0 40.2 Estimated cost of the new film tax relief in 13 2007/08(5) Total public sector selective 260.9 100.0 Sum of all of the above and automatic investment 14

Source: UK Film Council, Northern Alliance.

Abbreviations 15 BFI – British Film Institute. DCMS – Department for Culture, Media and Sport. HMRC – Her Majesty’s Revenue and Customs. NFTS – National Film and Television School. 16 N/RSA – National and Regional Screen Agencies.

Notes: 1. The National Lottery funding figure is for financial year 2007/08. 17 2. Investment for the MEDIA Programme is for awards made from 1 April 2007 to 31 March 2008. 3. Includes the Higher Education Funding Councils for England, Scotland and Wales, and investment from the Joint Information Systems Committee (JISC) which is HEFCE- funded. Comprises awards to BFI, Screen Academies and other strategic agencies. Does not include payments from educational funding councils to other film courses (film studies etc) in higher or further education. 18 4. Arts Council England, Arts Council of Wales, Arts Council Northern Ireland, Scottish Arts Council. Does not include Arts Council direct investments in artists’ film and video. 5. HM Treasury, Tax ready reckoner and tax reliefs, November 2008, pages 14 and 20. There was a residual fiscal cost in 2007/08 for the discontinued section 42 and section 48 tax reliefs which is not shown in Table 18.1 as it relates to previous policy and production years. 19

Chapter 18: Public investment in film in the UK – 149 21 18.2 Film spend by organisation Table 18.2 Net film spend by organisation, 2007/08 Net spend % of total Table 18.2 shows a breakdown of film spend by public Organisation £ million(1) net spend organisation. The numbers are presented on a net basis, that is where one film organisation such as the UK Film HM Revenue and Customs – tax relief 105.0 37.0 Council makes a grant to another such as Skillset that UK Film Council(2) 37.8 13.3 grant is deducted from the first organisation’s spend in order to avoid double counting. Most of the BFI 37.1 13.1 organisations listed in Table 18.2 make grants to the BBC Films 12.0 4.2 private sector (for instance for production funding, EU MEDIA(3) 11.4 4.0 distribution support and training) so there is another level of delegated activity not shown in this table. NI Screen 10.0 3.5 The largest net spender was HMRC (£105 million Film4 10.0 3.5 estimated for tax relief), followed by the UK Film Council National Film and Television School 7.9 2.8 (£37.8 million), BFI (£37.1 million) and BBC Films (£12 million). Putting aside HMRC tax relief, net spend Skillset 6.9 2.4 increased by 16% from 2006/07 to 2007/08 (from Scottish Screen 7.5 2.6 £153.9 million to £179 million). Welsh Agencies(4) 5.8 2.0 The biggest increases in spending were recorded by the European Union MEDIA Programme (£4.5 million in First Light Movies 5.2 1.8 2006/07; £11.4 million in 2007/08), the National Film Film London 4.4 1.5 and Television School (NFTS) (£2.9 million in 2006/07; £7.9 million in 2007/08) and First Light Movies Screen Yorkshire 4.1 1.4 (£1.9 million in 2006/07; £5.2 million in 2007/08). North West Vision and Media 3.9 1.4 The increase in MEDIA Programme spend represents the level of success by UK companies in winning support EM Media 3.5 1.2 from this pan-European scheme. The increase in First South West Screen 2.7 1.0 Light Movies is due to the impact of Mediabox, a new programme funded by the Department for Children, Screen West Midlands 2.5 0.9 Schools and Families in 2007/08. The NFTS increase is Northern Film and Media 2.1 0.7 however due to the availability of more complete figures from NFTS for 2007/08 and appears to represent a Screen East 1.7 0.6 more or less standstill picture for actual spending by Screen South 1.0 0.4 the school. British Council 0.9 0.3 See Table 16.3 in the 2008 Statistical Yearbook for the comparable figures for 2006/07. Heritage Lottery Fund 0.5 0.2 Local Government(5) 0.1 0.0 Total public sector (6) 284.0 100.0

Source: UK Film Council, Northern Alliance. 1. Net spend means spend after deducting grants and awards to other organisations in this table. 2. The UK Film Council gross spend in 2007/08 was £70.6 million. The UK Film Council made £32.8 million of grants and awards to other organisations such as BFI (£16.1 million), Skillset, Regional Screen Agencies and First Light. 3. Awards made between 1 April 2007 and 31 March 2008. 4. Welsh agencies means Film Agency for Wales, Welsh Creative IP Fund (part of Finance Wales), Welsh Film Archive (part of the National Library of Wales) and Wales Screen Commission (part of the Creative Industries Hub). 5. This is one project by Kent County Council. Otherwise, local government direct spend on film is not captured. 6. The spending tabulated above includes net transfers to and from reserves and spending financed by commercial income (eg from film rights) earned by agencies. For these reasons the total spending by agencies (£284 million) is higher than total public funding for film in the 2007/08 year (£261 million, Table 18.1).

150 –UK Film Council Statistical Yearbook 2009 1

18.3 Activities supported by public spend 18.4 Large film awards by agency 2007/08 3 on film Major production awards (greater than £250,000) given The various activities supported by public spend on by national and regional screen agencies to individual film in the UK in 2007/08 are shown in Table 18.3. film projects in 2007/08 are shown in Table 18.4. 4 Film production took the largest share, accounting for In relation to the median British domestic film budget £159.2 million (56% of the total). Distribution and of £1.7 million (see Chapter 17) and the median exhibition came second with £35.2 million (12%), co-production budget of £4 million, awards of this 5 followed by training and skills (8%), education, young size can provide substantial assistance to UK films of people and life-long learning (7%), overheads (6%), and distinctive national and regional character. film archives and heritage (4%). 6 Table 18.4 Large film production awards (£250,000+) Table 18.3 Activities supported by public spend on film, by national/regional agency, 2007/08 7 2007/08 Amount Agency Project (total = 18) £ Amount Activity £ million % of total Scottish Screen The Book of Blood 500,000 Production(1) 159.2 56.0 8 Stone of Destiny 440,000 Distribution and exhibition 35.2 12.4 Doomsday 300,000 Training and skills(2) 21.4 7.5 9 New Town Killers 250,000 Education, young people and Northern Ireland Screen Fairy Tales 400,000 life-long learning 18.4 6.5 Fifty Dead Men 10 Administration/overheads 17.9 6.3 Walking 500,000 Film archives and heritage(3) 12.1 4.3 Messiah 300,000 11 Script development 7.7 2.7 Hunger 300,000 Export and inward investment Desperados 588,333 promotion(4) 6.7 2.4 12 Red Mist 247,737 Business support(5) 5.6 2.0

(6) Film Agency for Wales Abraham’s Point 250,000 Total public film expenditure 284.2 100.0 13 Blonde 250,000 Source: UK Film Council, Northern Alliance. 1. Non-tax break production spend in 2007/08 was £54.2 million. I Know You Know 250,000 2. Skills Investment Fund, National/Regional Screen Agency training investment, 14 skills academies. Finance Wales The Edge of Love 700,000 3. National Film and Television Archive, National/Regional Screen Agency archive Creative IP Fund budgets, Heritage Lottery Fund investments. 4. UK Film Council International; British Council, locations services in nations Screen West Midlands Clubbed 250,000 15 and regions. 5. National/Regional Screen Agency investment: primary beneficiaries are Faintheart 330,000 independent production companies. 6. 2007/08 total expenditure (£284 million) was greater than total public The Day 375,000 funding (£261 million, Table 18.1) as expenditure was supplemented 16 by earned/self-generated income, grants from trusts and foundations Screen Yorkshire Liberty 320,000 and transfers from reserves. Source: UK Film Council, DCMS, Northern Alliance, N/RSA reports. 17

Chapter 18: Public investment in film in the UK – 151 21 Table 18.5 shows the Lottery awards made by the UK Film Table 18.6 Large awards (£250,000+) made by Council in 2008. There were 253 awards in total, to a UK Film Council, 2008 combined value of £15.6 million. Most of the awards Amount of award were for relatively low amounts (£50,000 and under) Fund Project (total = 12) £ made by the Development, Prints and Advertising and Premiere Nowhere Boy 1,200,000 New Cinema funds. For a list of the individual project titles see www.ukfilmcouncil.org.uk/awards Chéri 1,075,000 Harry Brown 1,002,225 Table 18.5 UK Film Council Lottery awards, 2008 1939 970,000 Number of Total value Fund awards £ million Triangle 625,500 Development 107 3.6 Dorian Gray 500,000 Prints and advertising 108 3.6 New Cinema Sex & Drugs & Rock & Roll 700,000 New Cinema 28 2.8 Fish Tank 570,000 Premiere 10 5.6 In the Loop 515,000 Total large awards 253 15.6 P&A Che: Part One 250,000

Source: UK Film Council. Hunger 250,000 Note: UK Film Council awards data are for calendar year 2008. Waltz with Bashir 250,000

The large awards (£250,000+) made by the UK Film Source: UK Film Council. Council in 2008 are shown in Table 18.6. The biggest Note: UK Film Council awards data are for calendar year 2008. awards (£1 million +) were for the Premiere Fund films Nowhere Boy, Chéri and Harry Brown. The largest New Cinema Fund award was to Sex & Drugs & Rock & Roll 18.5 Leading public funders of British film (£700,000) and there were three large Prints and production 2006–2008 Advertising Fund awards (£250,000) to Che: Part One, Table 18.7 shows the combined public agency and public Hunger and Waltz with Bashir, all of which made broadcaster investment in British films with budgets significant public and international impact in 2008/09. of £500,000+ for the calendar years 2006–2008. The largest public funder was the UK Film Council with 42 projects (combined budget £182 million), followed by Film4/Channel 4 (36 projects, combined budget £101 million) and BBC Films (32 projects, £190 million). These budget figures are for the total budget of the films, including the share of the budget provided by private investors and pre-sales.

152 –UK Film Council Statistical Yearbook 2009 1

Table 18.7 Leading public funders of British film production 2006–2008 3 Estimated budget Public funder Number £ million Selected titles 4 UK Film Council 42 182 Of which... Chéri, The Secret of Moonacre, Dorian Gray, Premiere Fund 21 140 St Trinian's, Fifty Dead Men Walking, Becoming Jane 5 New Cinema Fund 21 43 Mrs Radcliffe's Revolution, Nightwatching, Jean Charles, Adulthood, Sounds Like Teen Spirit, Man on Wire 6 Film4/Channel 4 36 101 How to Lose Friends and Alienate People, In Bruges, Happy-Go-Lucky, Slumdog Millionaire, Brick Lane, 7 And When Did You Last See Your Father?, The Red Riding Trilogy, Hunger

BBC Films 32 190 The Other Boleyn Girl, The Duchess, Eastern 8 Promises, Miss Potter, Death Defying Acts, Brideshead Revisited, Becoming Jane, Creation Screen East 12 63 The Boat that Rocked, Easy Virtue, Dean Spanley 9 EM Media 8 15 Bronson, Goal III, Bunny and the Bull Wales Creative IP Fund 7 22 The Edge of Love, Valhalla Rising, Hunger 10 Northern Ireland Screen 6 14 Hunger, Fifty Dead Men Walking, The Race

Screen West Midlands 6 8 Nativity, The Children, Faintheart 11 Irish Film Board(1) 616Cracks, Perrier’s Bounty, The Daisy Chain

Screen Yorkshire 6 13 The Damned United, The Red Riding trilogy, Hush 12 Scottish Screen 5 10 New Town Killers, Rounding up Donkeys, Wide Open Spaces 13 BBC Northern Ireland 3 5 The Race, Five Minutes of Heaven

Source: UK Film Council production tracking. Includes films with budgets £500,000+ only. In some cases more than one public agency contributed funding to the same film, so there is some double counting of budgets in the above table. Hence there is no ’total 14 budget’ row. 1. The Irish Film Board was one of a number of overseas public agencies that part-funded British films during the period. Others included the South Australian Film Corporation, Filmstiftung Nordrhein-Westfalen, the Croatian Film Centre, Fonds Sud (France) and the New Zealand Film Commission. 2. Data in this table are for the calendar years 2006–08. 15

18 See also: •For more information on film production in the UK seeChapter 17 (page134) 19 •See Chapter 20 for more information on the UK film economy (page163) •See Chapter 19 for more information on UK film companies(page 154). 20

Chapter 18: Public investment in film in the UK – 153 21 Chapter 19: Film industry companies

This chapter looks at the Facts in focus • In 2008, there were nearly 8,000 film and video numbers, turnover and production companies, 435 film and video distributors company rankings of the and 230 exhibitors in the UK. different film sectors in the • The number of film and video production companies more than trebled between 1996 and 2007. UK and Europe. The largest UK companies overall increased by 21% in this period. companies are in film • US majors, video distributors and exhibitors were prominent in the top 15 UK film companies in 2007 distribution and exhibition, (the most recent year for which comparable data while production companies are available). are the most numerous. Across • Across Europe the most prominent companies were US majors, British exhibitors and French Europe, the US majors are production/distribution companies. prominent but so also are • Working Title (10 titles) topped the list of UK production companies measured by number of films produced over British exhibitors, French and the three years 2006 to 2008. German production companies and French distributors. 1

19.1 Number of companies in the film and video industries 3 The number of companies involved in the film and video industries has grown rapidly in the last 12 years, particularly in the production sector where the number of companies grew by 277% between 1996 and 2007, compared with the UK average of 21% (Table 19.1). In 2008, the reported number of companies increased again, but this growth was at 4 least in part due to the inclusion of companies registered for PAYE but not VAT, which were not included in previous years. This is an improvement in coverage, so the 2008 numbers should be a closer reflection of the true numbers of film and video companies. In 2008 there were 7,970 film and video production companies, 435 film and video 5 distributors and 230 exhibitors.

Table 19.1 Number of companies by industry group, 1996–2008 6 Film and video Film and video Year production distribution Film exhibition UK all industries 7 1996 1,745 355 155 1,380,695 1997 2,460 360 160 1,547,175 1998 3,065 370 160 1,573,935 8 1999 3,460 380 165 1,595,705 2000 3,900 425 165 1,616,835 9 2001 4,185 485 190 1,623,025

2002 4,605 515 195 1,619,195 10 2003 5,065 530 205 1,623,715

2004 5,275 455 200 1,611,535 11 2005 5,785 445 200 1,631,540

2006 6,210 415 200 1,646,280 12 2007 6,575 400 200 1,673,835 2008 7,970 435 230 2,161,555 13 Growth 1996–2007 (%) 276.8 12.7 29.0 21.2

Source: Office for National Statistics. From 1996 to 2007, data include only companies registered for VAT. 14 For 2008, data include in addition companies registered for PAYE but not registered for VAT, so give improved coverage of the company population.

Image: Atonement Copyright © 2009 Universal Studios. ALL RIGHTS RESERVED Chapter 19: Film industry companies – 155 21 19.2 Changing size distribution Figure 19.2 The changing size distribution of UK of film companies companies (all industries), 1996-2008 Percentage of total companies The growth in the number of film and video production 60.0 companies has been concentrated in the smallest turnover size bands, the opposite of the UK all-industries trend. The proportion of film and video production 50.0 companies in the £1,000–£99,000 turnover band was 57% in 2008, compared with 43% for UK all industries 40.0 (Figures 19.1 and 19.2). Interestingly, there has also been a significant increase in the number (as opposed 30.0 to proportion) of large film and video production companies. In 2008 there were 150 film and video 20.0 production companies with a turnover of £5 million or more, compared with only 45 in 1996. 10.0 Figure 19.1 The changing size distribution of film and video production companies, 1996-2008 0 1–99 100–999 1,000–4,999 5,000+ Percentage of total companies Turnover band (£000) 60.0 1996 2008

50.0 Source: Office for National Statistics, RSU analysis. Note: For 1996 the data are for VAT-registered companies only. For 2008 the data include PAYE-registered companies that were not registered for VAT. 40.0 For the film distribution and exhibition sectors (Figures 30.0 19.3 and 19.4) the growth has been in the larger turnover size brackets, above £1 million per year. 20.0

10.0

0 1–99 100–999 1,000–4,999 5,000+ Turnover band (£000) 1996 2008

Source: Office for National Statistics, RSU analysis. Note: For 1996 the data are for VAT-registered companies only. For 2008 the data include PAYE-registered companies that were not registered for VAT.

156 –UK Film Council Statistical Yearbook 2009 1

Figure 19.3 The changing size distribution of film and Figure 19.4 The changing size distribution of film 3 video distribution companies, 1996-2008 exhibition companies, 1996-2008 Percentage of total companies Percentage of total companies 60.0 70.0 4

50.0 60.0

50.0 5 40.0

40.0 30.0 6 30.0

20.0 20.0 7 10.0 10.0

0 1–99 100–999 1,000–4,999 5,000+ 0 1–99 100–999 1,000–4,999 5,000+ 8 Turnover band (£000) Turnover band (£000) 1996 1996 2008 2008 9

Source: Office for National Statistics, RSU analysis. Source: Office for National Statistics, RSU analysis. Note: For 1996 the data are for VAT-registered companies only. For 2008 the Note: For 1996 the data are for VAT-registered companies only. For 2008 the data include PAYE-registered companies that were not registered for VAT. data include PAYE-registered companies that were not registered for VAT. The apparent increase in the proportion of film exhibition companies in the 10 £1–99,000 turnover band is due to the inclusion of PAYE-registered companies in 2008.

Chapter 19: Film industry companies – 157 21 19.3 National/regional distribution of film companies in the UK Table 19.2 shows the national/regional distribution of film companies (local units) in the UK in 2008. Although it does not show differences in average turnover from region to region it gives a good first approximation of the geographic distribution of film activity in the UK. The production and distribution sectors were concentrated in London and the South East (68% and 69% of local units respectively) while the exhibition sector more closely matched the geographic distribution of the population (but not completely – see Chapter 10).

Table 19.2 National/regional distribution of film companies (local units) in the UK, 2008 Production Distribution Exhibition

Number % Number % Number % London 4,295 53.3 250 54.9 120 22.0 South East 1195 14.8 65 14.3 70 12.8 South West 480 6.0 20 4.4 55 10.1 East 460 5.7 45 9.9 40 7.3 North West 360 4.5 20 4.4 50 9.2 Scotland 275 3.4 10 2.2 45 8.3 Yorkshire and the Humber 235 2.9 10 2.2 35 6.4 West Midlands 215 2.7 15 3.3 35 6.4 Wales 175 2.2 5 1.1 30 5.5 East Midlands 165 2.0 5 1.1 25 4.6 North East 105 1.3 5 1.1 15 2.8 Northern Ireland 105 1.3 5 1.1 25 4.6 Total 8,065 100.0 455 100.0 545 100.0

Source: ONS. The location of each local unit of a company is counted in this table, not just the location of the head offices.

158 –UK Film Council Statistical Yearbook 2009 1

19.4 Leading film companies in the UK and Europe 3 Table 19.3 shows the top 15 film companies in the UK in 2007 as identified by the European Audiovisual Observatory. Several features stand out: the prominence of the US majors, the importance of undertaking multiple activities (production, distribution, rights, video) and the relatively high position of companies specialising in video and 4 exhibition. There is only one UK distributor on the list (Entertainment), and two UK production companies (Ingenious and Future), both of which engage in film financing. 5 Table 19.3 Top 15 film companies in the UK, 2007 Operating revenues Rank Company Activities €000 6 1Walt Disney International DISFILM, DIST, RIGHTS, VID 1,535,974

2Odeon and UCI Cinemas Group EXH 703,683 7 3Warner Bros Entertainment UK DISFILM, PRODFILM *658,079

4Cineworld Group EXH 399,565 8 5Universal Pictures Productions RIGHTS, DISFILM, PRODFILM *364,704

62 Entertain VID 328,165 9 720th Century-Fox Home Entertainment VID **321,885 8VUE Entertainment Holdings (UK) EXH 319,856 10 9Sony Pictures Home Entertainment VID *195,716 10 Columbia Pictures Corporation PRODFILM, DISFILM, VID *191,152 11 11 Ingenious Film Partners PRODFILM, INVFILM *185,259 12 The Entertainment Group of Companies DISFILM, VID *167,994 12 13 Future Capital Partners Group Holdings PRODFILM, INVFILM *141,693 14 Paramount Home Entertainment (UK) VID *137,751 13 15 National Amusements (UK) EXH *104,812

Source: European Audiovisual Observatory, 2008 Yearbook. *Indicates 2006 revenues. 14 ** Indicates 2005 revenues. Definitions: DISFILM = film distribution; DISTV = television distribution, RIGHTS = trade in television rights; VID = video; EXH = exhibition; PRODFILM = film production; INVFILM = film investment.

15 Across Europe, the US majors were prominent. They were joined by four French companies (Pathé, Europalaces, Canal+ and UGC), indicating the continued corporate strength of the French film industry, three British-based exhibitors (Odeon, Cineworld and VUE), a Swedish distributor (Egmont Nordisk), an Italian producer (RAI), a Dutch 16 producer and distributor (Embassy Eagle), a British video distributor (2 Entertain) and a German producer (Bavaria) (Table 19.4).

Chapter 19: Film industry companies – 159 21 Table 19.4 Top 20 film companies in Europe, 2007 Operating revenues Rank Company Activities Country €000 1Walt Disney International DISFILM, DIST, RIGHTS, VID GB1,535,974 2Odeon and UCI Cinemas Group EXH GB703,683 3Warner Bros Entertainment UK DISFILM GB*658,079 4Groupe Pathé EXH, DISFILM, VID, RIGHTS, PRODFILM, TV FR609,000 5Warner Bros Entertainment Spain DISFILM ES*520,279 6Egmont Nordisk Film DISFILM, VID SE449,000 7Europalaces EXH FR427,000 8Cineworld Group EXH GB399,565 9Groupe Canal+ PROD, DISFILM, RIGHTS, VID FR***394,000 10 RAI Cinema PRODFILM, RIGHTS IT 373,816 11 Embassy Eagle Holdings PRODFILM, DISFILM NL *366,517 12 Universal Pictures Productions RIGHTS, DISFILM, PRODFILM GB *364,704 13 UGC EXH, DISFILM, VID, RIGHTS, PRODFILM FR 359,851 14 Warner Bros Entertainment Germany DISFILM DE 337,451 15 2 Entertain VID GB 328,165 16 20th Century-Fox Home Entertainment VID GB **321,885 17 VUE Entertainment Holdings (UK) EXH GB 319,856 18 United International Pictures VID, DISFILM NL 318,118 19 Bavaria Film PRODFILM, PRODTV DE 285,900 20 Walt Disney Iberia DISFILM ES *232,700

Source: European Audiovisual Observatory, 2008 Yearbook. *Indicates 2006 revenues. ** Indicates 2005 revenues. *** indicates 2004 revenues. Definitions: DISFILM = film distribution; DISTV = television distribution, RIGHTS = trade in television rights; VID = video; EXH = exhibition; PRODFILM = film production; PRODTV = television production, TV = television.

160 –UK Film Council Statistical Yearbook 2009 1

19.5 Leading film production companies in the UK and Europe 3 Looking at film production only, we see that nine out of the top 20 European production companies in 2007 were French, five German, three Nordic, two Italian and one British. As in 2005 and 2006, the list was topped by Constantin Film AG of Germany, makers of Perfume and Downfall. The UK is under-represented in this table due to the frequent 4 use of special purpose vehicles (companies set up to make a single film), which appear singly rather than grouped under the name of their parent company. 5 Table 19.5 Top 20 film production companies in Europe, 2007 Operating revenues 6 Rank Company Nationality €000 1Constantin Film AG DE 225,000 7 2EuropaCorp FR 205,426 3Ingenious Films Partners LLP GB*185,259 8 4Filmauro (cons) IT 121,994 5Nordisk Film Valby A/S DK 115,886 6Nordisk Film AS NO 98,700 9 7AB Svensk Filmindustri SE 93,099 8Pathé Production FR 90,357 10 9SCA 1 (formerly Films Christian Fechner) FR**83,803

10 Odeon Film AG DE 80,670 11 11 IMF Internationale Medien und Film GmbH DE *78,607

12 Gaumont FR 72,900 12 13 Senator Entertaintment AG DE 68,400

14 Fidélité Films FR 62,202 13 15 Cattleya IT 57,511 16 Mediastream Vierte Film GmbH DE **53,097 14 17 Babylon AD FR 52,501 18 La Petite Reine FR *41,832 15 19 Galatée Films FR 38,490 20 Pan Européenne Production FR *37,301 16 Source: European Audiovisual Observatory, 2008 Yearbook, Table T.16.3. Special purpose vehicles omitted. *Indicates 2006 revenues. ** Indicates 2005 revenues. 17

Drawing on the UK Film Council’s production database and public information, Table 19.6 presents the top 14 companies involved in the production of UK films over the three-year period 2006 to 2008. Working Title came top of 18 the list with 10 films, followed by Vertigo and Film and Music Entertainment with nine each, while Revolution Films made seven. Table 19.6 also illustrates the range of budgets for UK films. At the low end, Warp X was involved with five films with 19 an estimated combined budget of £5 million. At the upper end, Heyday Films, working with Warner Bros (UK) on the Harry Potter films, was involved in four productions with an estimated combined budget of £300 million. 20

Chapter 19: Film industry companies – 161 21 Table 19.6 Top 14 production companies involved in UK production 2006–2008 Estimated combined budget Production company Number of films £ million Selected titles Working Title Films 10 240 The Boat that Rocked, Green Zone, Hippie Hippie Shake, Atonement, Elizabeth: the Golden Age, Mr Bean’s Holiday Vertigo Films 9 17 Bronson, The Children, Outlaw, The Firm, Dogging: a Love Story, Dirty Sanchez: The Movie Film & Music Entertainment 9 19 Bathory, Quest for a Heart, Mirror Maze, Reykjavik Whale Watching Massacre Revolution Films 7 20 Red Riding 1974, 1980 and 1983, The Unloved, 7 Days, A Mighty Heart, Genova Warp X Films 5 5 Bunny and the Bull, Donkey Punch, Hush, Dogging: a Love Story Fragile Films 5 27 St Trinians, Dorian Gray, Easy Virtue, From Time to Time Matador Pictures 5 14 The Last Princess, Wild Target, Book of Blood, Dread Heyday Films 4 300 The Boy in Striped Pyjamas, Is There Anybody There?, Harry Potter and the Half Blood Prince, Harry Potter and the Order of the Phoenix Ruby Films 4 27 The Other Boleyn Girl, Brick Lane, Fish Tank, Five Minutes of Heaven Potboiler Productions 4 26 Blindness, Happy-Go-Lucky, Lesson 21, Shrooms Clubdeal 4 18 Flight of Fury, Pumpkinhead: Ashes to Ashes Skyline Films 4 22 Lesbian Vampire Killers, Rocknrolla, The Bank Job Ecosse Films 4 35 Becoming Jane, Brideshead Revisited, Pelican Blood, The Waterhorse Number 9 Films 4 20 And When Did You Last See Your Father?, How to Lose Friends and Alienate People, Sounds Like Teen Spirit

Source: UK Film Council. ‘Estimated combined budget’ is the sum total of the estimated budgets of all the films associated with the named company. It is not a measure of that company’s contribution to the budget. Most films had a number of production companies associated with them and the funding came from a variety of sources including equity investment, distributor minimum guarantees and television pre-sales. The table includes all those companies associated with four or more films over the three year period.

See also: •For Film4 and BBC Films see Chapter 18 (page152) •For film production company activity levels in 2008 seeChapter 17 (page144) •For US studio involvement in UK film production in 2008 seeChapter 17 (page145) •For leading film distributors in the UK in 2008 seeChapter 9 (page68) •For leading film exhibitors in the UK in 2008 seeChapter 10 (page82) •For numbers and size distribution of film workplaces in 2007 seeChapter 21 (page181).

162 –UK Film Council Statistical Yearbook 2009 Image: The Complete History of My Sexual Failures courtesy of Optimum Releasing Chapter 20: The UK film economy

The film industry is significant Facts in focus • In 2007, the UK film industry had a total turnover in the UK economy, making a of nearly £6.1 billion. substantial contribution to • Its contribution to UK GDP was £2.5 billion, 0.2% Gross Domestic Product (GDP) of the total. and the balance of payments. • The fastest growing sub-sector was film and video production, but distribution and exhibition also grew Film exports hit an all-time high substantially. of just over £1 billion in 2007, • The core UK film industry (film production plus distribution and exhibition of UK films) contributed generating a trade surplus of £1.5 billion directly to GDP and £4.3 billion including over £200 million. Such all indirect effects. successes are not just good • The industry exported £1,050 million worth of services in 2007, made up of £646 million in royalties and news for the industry but also £403 million in film production services. for other businesses like • Exports in 2007 were 50% higher than in 2001. tourism which are boosted • The UK film trade surplus in 2007 was £232 million. by the film industry. 20.1 Film industry turnover 1995–2007 Figure 20.1 shows the total turnover of the UK’s film sectors (production, distribution and exhibition) for the period 1995 to 2007. Each of the three sectors has shown strong growth over this period, with the total industry turnover increasing from £2 billion in 1995 to £6.8 billion in 2006, before falling back to £6.1 billion in 2007. The fluctuation mainly reflects changes in the reported turnover of the production sector. This rise and fall is partly due to sampling variation in the Annual Business Inquiry, but could also be a delayed reflection of the fall in total UK film market revenues since 2004, shown in Figure 14.1. Possible reasons for such a lag would include the time it takes for revenues to filter down the value chain and the likelihood that contract prices for future distribution reflect current market revenues rather than (unknown) future revenues.

Figure 20.1 Total turnover of UK film industry by sector, 1995–2007 £ million 8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Film and 829 1,514 1,612 1,306 1,589 2,334 1,402 1,389 2,119 2,281 2,280 3,702 2,826 video production Film and 895 1,385 1,328 1,521 1,555 1,494 1,271 1,721 1,718 2,030 2,450 2,125 2,242 video distribution Film 329420 527 485 485 519 828 871 987 1,065 1,065 976 1,023 exhibition

Source: ONS Annual Business Inquiry. ‘Total turnover’ is expressed in current values, ie not adjusted for inflation.

164 –UK Film Council Statistical Yearbook 2009 1

The total industry turnover expressed in real terms, that is with the effects of inflation removed, is shown in Figure 3 20.2. The real increase has been large: 152% for film and video production, 85% for film and video distribution and 130% for film exhibition. Overall, the industry more than doubled in size in real terms over this period.

4 Figure 20.2 Inflation-adjusted turnover of UK film industry by sector, 1995–2007 £ million (2007 pounds)

8,000 5 7,000

6,000 6 5,000

4,000

3,000 7

2,000

1,000 8 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Film and 1,120.2 1,972.9 2,046.9 1,623.8 1,937.5 2,809.1 1,650.6 1,584.2 2,349.8 2,462.5 2,412.0 3,812.5 2,826.0 9 video production Film and 1,209.4 1,804.8 1,686.2 1,891.1 1,896.1 1,798.1 1,496.4 1,962.9 1,905.1 2,191.5 2,591.9 2,188.4 2,242.0 video 10 distribution Film 444.6 547.3 669.2 603.0 591.4 624.6 974.8 993.4 1,094.5 1,149.7 1,126.7 1,005.1 1,023.0 exhibition

Source: ONS Annual Business Inquiry, HM Treasury. 11 The deflator used to calculate real values is the UK whole economy deflator. Values expressed in constant 2007 pounds sterling.

12 20.2 Film industry contribution to GDP 1995–2007

The contribution an industry makes to UK Gross Domestic Product is measured by its gross value added (GVA). 13 ‘Value added’ is industry turnover minus the cost of inputs bought from other industries. The main components of value added are wages and salaries, interest and company profits. Value added is therefore a measure of the industry’s ability to generate income for its workers, company owners and investors. 14 The industry’s total value added increased from £956 million in 1995 to £3.6 billion in 2006, before falling back to £2.5 billion in 2007 (Figure 20.3). This is 0.2% of the UK’s total GDP. All three sub-sectors showed substantial growth over the 12 year period, with the production and exhibition sectors showing the biggest gains. 15 In 2007, production accounted for 48% of value added, distribution 36% and exhibition 16%.

Chapter 20: The UK film economy – 165 21 Figure 20.3 UK film industry gross value added, 1995–2007 £ million 4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Film and 299 663 758 525 805 1,032 514 562 983 1,032 1,035 1,951 1,196 video production Film and 522 829 638 784 716 582 689 760 520 841 1,072 1,232 900 video distribution Film 135 208 264 260 266 250 354 504 592 592 600 407 405 exhibition

Source: ONS Annual Business Inquiry. ‘Gross value added’ is expressed in actual values, ie not adjusted for inflation.

Figure 20.4 shows the industry’s value added expressed in real terms, that is with the effects of inflation removed. There was a sharp increase in real industry GVA in 1995-1996, followed by a plateau from 1996 to 2002. Real GVA then began to increase strongly again, reaching a peak of £3.7 billion in 2006. Real GVA was £2.5 billion in 2007, 94% higher than in 1995.

Figure 20.4 UK film industry real gross value added, 1995–2007 £ million (2007 pounds) 4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Film and 404.0 863.9 962.5 652.7 981.6 1,242.1 605.1 641.0 1,090.1 1,114.1 1,094.9 2,009.2 1,196.0 video production Film and 705.4 1,080.3 810.1 974.8 873.0 700.5 811.2 866.8 576.6 907.9 1,134.1 1,268.8 900.0 video distribution Film 182.4 271.0 335.2 323.3 324.3 300.9 416.8 574.8 656.5 639.1 634.7 419.1 405.0 exhibition

Source: ONS Annual Business Inquiry, HM Treasury. The deflator used to calculate real values is the UK whole economy deflator. Values expressed in constant 2007 pounds sterling.

166 –UK Film Council Statistical Yearbook 2009 1

20.3 Economic impact of the film industry 3 During 2007 the UK Film Council and Pinewood Shepperton plc commissioned a study of the economic impact of the UK film industry, which examined not only the direct impact but also indirect contributions, such as those to supplier industries, tourism, culture, merchandising, trade and the promotion of the UK internationally. 4 The study focused in particular on the core UK film industry, defined as film production in the UK plus the distribution and exhibition of UK films. The analysis showed that the core UK film industry contributed £1.5 billion directly to UK GDP in 2006, with a direct contribution to the Exchequer of £436 million. This GDP contribution rose to £4.3 billion 5 when all indirect effects were taken into account, as shown in Table 20.1.

6 Table 20.1 Summary of the economic contribution of the core UK film industry Total Total contribution contribution to Exchequer 7 to UK GDP revenues Employment in 2006 in 2006 impact Channel of impact £ million £ million in 2006 8 Direct 1,510 436 33,500 Multiplier effects 1,625 420 33,500 British film box office effect 53 8 500 9 Tourism 900 200 20,000 Promotion/trade 20 5 700 10 Merchandising 235 105 6,500

Total 4,343 1,174 94,700 11

Source: Oxford Economics. Multiplier effects means the additional economic activity induced in the wider UK economy. British film box office effect is the amount that the total UK box office is raised by the presence of UK films. It is different from and less than the UK film box office share. 12

A copy of the report can be found on the UK Film Council’s website – www.ukfilmcouncil.org.uk/media/pdf/5/8/FilmCouncilreport190707.pdf 13

Chapter 20: The UK film economy – 167 21 20.4 Film exports 1995–2007 The UK film industry exported £1,050 million worth of services in 2007 (the latest year for which data are available), £646 million of which came from royalties and £403 million from film production services. Compared with 2006, both categories increased significantly. Film exports in 2007 were 50% higher than in 2001 as can be seen in Figure 20.5.

Figure 20.5 UK film exports, 1995–2007 £ million 1,200

1,000

800

600

400

200

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Royalties 560 686 438 427 508 487 468 434 400 399 660 582 646 Film 227 202 212 154 145 210 232 222 233 444 307 330 403 production Total film 787 888 650 581 653 697 700 656 633 843 967 913 1050 company exports

Source: Office for National Statistics (ONS). Data for 2008 will be available in Nov/Dec 2009. The export data are derived from the ONS Film and Television Survey (2007) which is a sample survey with a high response rate (92%) of companies in the Inter Departmental Business Register in the Standard Industrial Classification codes relating to film and television. The above chart shows the result for film companies only.

168 –UK Film Council Statistical Yearbook 2009 1

20.5 Film imports 1995–2007 3 The pattern of UK film imports (Figure 20.6) is different to that of exports. The great majority of film imports are royalties, reflecting the limited use of offshore production services by the UK and the payment of royalties for foreign films (particularly USA films) shown in the UK. Film imports in 2007 were about the same as in 2006 and 2005. 4 In 2007, film companies reported a significant increase in imports of production services. The reason for this is unclear, though it is likely to originate from the UK subsidiaries of major US studios as this group reported a significant increase in imports in 2007. 5

Figure 20.6 UK film imports, 1995–2007

£ million 6 900

800

700 7 600

500 8 400

300

200 9 100

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

10 Royalties 489 507 419 374 317 497 405 403 430 616 704 698 573 Film 192 145 106 63 58 113 50 67 108 136 100 86 245 production 11 Total film 681 652 525 437 375 610 455 470 538 752 804 784 818 company imports

Source: ONS. 12

20.6 The film trade balance 1995–2007 13 The film industry has made a continuous positive contribution to the UK balance of payments since 1995, with a trade surplus (positive balance of exports over imports) in 2007 of £232 million, as Figure 20.7 shows. This is significant at a time when the UK’s physical trade is showing a large deficit and helps explain the Government’s support for creative industries such as film. 14 Figure 20.7 Trade surplus of UK film industry, 1995–2007 £ million 15 300

250 16

200

150 17

100

18 50

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 19 Balance 106 236 125 144 278 87 245 186 95 91 163 128 232

Source: ONS. Note: ‘Trade surplus’ equals exports minus imports. Where a company (eg the UK subsidiary of a USA major) receives income from another country on behalf of its parent 20 company and subsequently passes it on to its parent company, this is recorded both as a receipt and as a payment, leaving the measure of the trade surplus unaffected.

Chapter 20: The UK film economy – 169 21 20.7 Film export markets 20.8 UK film exports compared with the global market for filmed entertainment Figure 20.8 shows the geographic distribution of UK film exports for the years 2003-2007. The leading export A useful comparison can be made between UK film destinations were the USA (51%), followed by the export shares and the geographical distribution of the European Union (21%) and ‘other Europe’ (10%). Asia global market for filmed entertainment (Figure 20.9). took 5% and the rest of the world 13% of the total. For the EU, USA and Rest of the World, UK exports are roughly proportional to the size of the filmed Figure 20.8 Destination of UK film exports entertainment market in each of those regions. as percentage of the total, 2003–2007 The differences that stand out are: •The higher proportion of UK exports to ‘other Europe‘ European Union 21.3% (10% against a 3% global market share) Other Europe 9.7% •The lower proportion of UK exports to Asia (5%) USA 50.9% compared with the Asian countries’ share of the global Asia 5.2% market (19%). Rest of the world 12.9% The latter discrepancy reflects the strength of the main Asian countries (Japan, China, South Korea and India) in their own markets and the consequent lower market shares for Hollywood and UK films.

Source: ONS. Rest of the world cannot be disaggregated due to sampling variation and disclosive data.

Figure 20.9 UK export shares 2003–2007 compared with the global market for filmed entertainment, 2008 % share 60.0

50.0

40.0

30.0

20.0

10.0

0 Rest of the Asia USA Other Europe European Union World

UK 12.9 5.2 50.9 9.7 21.3 exports %

Global 11.7 19.3 45.0 3.4 20.6 market %

Source: UK exports: ONS. Global market: PricewaterhouseCoopers. ‘Total global market for filmed entertainment’ does not include the UK, to keep the figures comparable with the UK’s export figures.

170 –UK Film Council Statistical Yearbook 2009 1

20.9 The geographical distribution of the UK’s film trade surplus 3 The geographical distribution of the UK’s film trade surplus was different from the export pattern, as shown in Table 20.2. In the years 2003-2007, almost half the surplus came from ‘other Europe’. Rest of the world accounted for 32% and Asia 23%. On the other hand, the UK ran a film trade deficit with the USA equivalent to 17% of the film 4 trade balance. This reflects the fact that, notwithstanding the strong performance of UK films in the US market and the sale of export production services to the USA, the UK pays large royalties to the USA arising from the distribution of Hollywood films in the UK. 5

Table 20.2 International transactions of the UK film industry by geographical area, annual average, 2003-2007 6 Exports Imports Balance % £ million £ million £ million balance European Union 187.6 167.2 20.4 14.3% 7 Other Europe 85.8 17.4 68.4 48.1% USA 448.2 472.0 –23.8 –16.7% 8 Asia 45.8 13.8 32.0 22.5% Rest of the world 113.8 68.6 45.2 31.8% 9 Total 881.2 739.0 142.2 100.0%

See also: 18 •For more information on the UK and global film market see Chapter 14 (page108)

•For more information on the performance of UK films internationally see Chapter 6 (page42) 19 •For more information on inward investment in film production in the UK see Chapter 17 (page134)

•See Chapter 18 (page146) for details of public investment in film. 20

Chapter 20: The UK film economy – 171 21 Chapter 21: Employment in the film and video industries

The film and video industries Facts in focus • 35,416 people worked in the film and video industry in employ significant numbers of 2007/08, of whom 21,113 worked in film and video skilled people but it is a volatile production. This was a decrease on 2007. sector, with unpredictable • Production and distribution were concentrated in London and the South East. peaks and troughs in • 46% of people in film and video production were employment levels. 2007/08 freelance. saw a decline in production • Women made up 40% of the film production workforce employment. On the plus side, in 2006 compared with only 33% in 2002. • People from minority ethnic groups were under- women represented a higher represented in the film production workforce – only 5% proportion of screenwriters in 2006, the same as in 2002. and directors of UK films •Women made up 17% (12% in 2007) of the screenwriters of UK films released in the UK in 2008 released in 2008. and 12% (6% in 2007) of the directors. 1

21.1 The workforce 3

21.1.1 Labour Force Survey 4 According to the Labour Force Survey conducted by the Office for National Statistics (ONS), a total of 35,416 people worked in the film and video production, distribution and film exhibition sectors in the year 2008 (October 2007 to September 2008). Figures include both full-time and part-time workers. Table 21.1 shows the breakdown. 5

Table 21.1 Film and video industry workforce, 2008 Number in 6 Sector SIC employment Film and video production 9211 21,113 7 Film and video distribution 9212 2,751 Film exhibition 9213 11,551 Total 35,416 8

Source: Labour Force Survey, ONS. Notes: 1. SIC = Standard Industrial Classification. 9 2. Numbers in employment are averages of the four calendar quarters, Oct-Dec 2007, Jan-Mar, Apr-Jun and Jul-Sep 2008. 3. People in employment include people aged 16 or over who did paid work (as an employee or self-employed), those who had a job that they were temporarily away from, those on government-supported training and employment programmes, and those doing unpaid family work. 4. ONS does not separate video production and distribution from film production and distribution. 10

The 2008 figure continued a falling trend in reported employment in the film and video production sector. Overall however, the film and video industry workforce was 13% larger in 2008 than in 1996. This is comparable to the 11 increase in the overall UK workforce of just over 14% over the same period. Figure 21.1 shows the changing levels of employment in the three film-related sectors.

Employment in the film production sector has continued to shrink since the peak of 2001, despite the fact that UK 12 production spend has been higher on average since 2003 than it was in 2001 and 2002 (see Figure 17.2). Distribution is fairly constant, while the upward trend in exhibition to 2004 has ceased and been replaced by a downward one. 13

Image: Hunger courtesy of Icon Film Distribution Chapter 21: Employment in the film and video industries – 173 21 Figure 21.1 Size of film and video workforce, 1996–2008

Number in employment 35,000

30,000

25,000

20,000

15,000

10,000

5,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Film and 17,705 23,819 26,255 22,407 23,396 31,27129,768 29,087 27,831 24,909 24,677 22,597 21,113 video production Film and 3,296 3,188 4,622 2,277 4,205 3,918 4,441 4,737 2,705 3,379 2,862 4,521 2,751 video distribution Film 10,427 11,585 14,121 16,917 13,328 11,844 14,819 19,839 21,415 14,913 15,998 11,516 11,551 exhibition

Source: Labour Force Survey, ONS. Notes: 1. The employment figures are averages of the four ‘calendar quarters’ (Oct-Dec, Jan-Mar, Apr-Jun and Jul-Sep), referred to as ‘year to September’. In 2006, Eurostat required all countries in the EU to have a Labour Force Survey based on calendar quarters. Most people working in the film distribution and exhibition sectors were employees, but the film production sector had a higher proportion of freelance workers. In 2008, 46% of those engaged in film and video production, a total of 9,765 people, were self-employed (Table 21.2 and Figure 21.2).

174 –UK Film Council Statistical Yearbook 2009 1

Table 21.2 Film and video production workforce (SIC 9211), 1996–2008 3 Unpaid Total in Self-employed Unpaid family worker employment Self-employed as % of total family worker as % of total 4 1996 17,705 7,539 42.6 215 1.2 1997 23,819 9,313 39.1 488 2.0 1998 26,255 13,276 50.6 – – 5 1999 22,407 10,776 48.1 422 1.9 2000 23,396 10,764 46.0 107 0.5 6 2001 31,271 12,201 39.0 705 2.3

2002 29,768 13,209 44.4 305 1.0 7 2003 29,087 15,330 52.7 – –

2004 27,831 14,137 50.8 251 0.9 8 2005 24,909 9,693 38.9 1,076 4.3

2006 24,677 11,949 48.4 502 2.0 9 2007 22,597 9,752 43.2 – – 2008 21,113 9,765 46.2 – – 10 Source: Labour Force Survey, ONS. Notes: 1. Year means the year ending September. See footnote to Figure 21.1 for explanation. 2. An ‘unpaid family worker’ is defined as a person who is doing unpaid work for a business that they own or that a relative owns. 11

The proportion of self-employed workers has fluctuated in the 40–50% band since 1996. In comparison, only 13% of the total UK workforce was self-employed in the year to September 2008. 12

Figure 21.2 Self-employed and unpaid family workers as proportions of total workforce, film and video production (SCI 9211), 1996–2008 13 % total in employment 60 14 50

40 15

20 16

17 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Self-employed 42.6 39.1 50.6 48.1 46.0 39.0 44.4 52.7 50.8 38.9 48.4 43.2 46.2 as % of total 18 Unpaid family 1.2 2.0 1.90.5 2.3 1.0 0.9 4.3 2.0 worker as % of total 19 Source: Labour Force Survey, ONS. Notes: 1. Year means the year ending September. See footnote to Figure 21.1 for explanation. 2. Data for unpaid family workers were unavailable for 1998, 2003, 2007 and 2008 due to sampling, but numbers were likely to be small. 20

Chapter 21: Employment in the film and video industries – 175 21 21.1.2 Skillset’s Labour Market Intelligence In view of the limitations of official labour market data in providing workforce size at sub-sector level, Skillset, the Sector Skills Council for the creative media industries, compiles its own workforce employment statistics for a number of sub-sectors of the creative industries. According to Skillset’s 2008 Labour Market Intelligence (LMI) Digest for film, the UK film industry had a total workforce of 27,800 people. The majority were working in exhibition (62% of total, 17,200 people), with 34% in production (9,500 people) and 4% (1,100 people) in distribution. The LMI workforce estimates for film production and distribution are not directly comparable with those from the LFS as the latter includes workers from the video industry. Nonetheless, they are 43% and 40% of their LFS counterparts for film and video combined. The LMI estimate for film exhibition is directly comparable to that from the LFS. The LMI figure (17,200 people) is 49% higher than the equivalent figure from LFS (11,551).

21.2 The feature film production workforce survey The Skillset/UK Film Council feature film production surveys aim to obtain reliable statistics on working patterns, skills development needs, existing provision, and barriers experienced to receiving training and development. Following a survey conducted in 2002, a second feature film workforce survey was carried out in 2006 and its final results published in 2008. Here we report and contrast the main results on demographics and work patterns between the two surveys. Full reports of both surveys are available from the Skillset website (see the end of the chapter). Two-fifths of the 2006 survey respondents were women, with the female percentage varying widely by occupation group, from 85% in make-up and hairdressing to 3% in construction, as Table 21.3 shows. There appears to be some variation in the gender profiles between the two surveys. There were more female assistant directors (39%) but fewer women working in editing, post-production and visual effects (26%) in 2006. Five percent of the respondents in the sound/electrical occupations were women compared to zero in 2002.

Table 21.3 Occupational group by gender, film production workforce, 2002 and 2006 Respondents 2002 Respondents 2006 Occupational group Male % Female % Male % Female % Production / script development 34 66 36 64 Assistant directors 74 26 61 39 Art /set decorating / props 68 32 55 45 Camera 91 9 85 15 Sound / electrical 100 – 95 5 Costume 30 70 20 80 Make-up / hairdressing 12 88 15 85 Editing / post-production / visual effects 58 42 74 26 Construction 95 5 97 3 Locations 76 24 78 23 Others 70 30 65 35 All occupations 67 33 60 40

Source: Skillset. Note: The percentages for male and female in some occupational groups do not add up to 100% due to rounding.

The challenge of reflecting the UK’s ethnic diversity in the film production industry is evident in Tables 21.4 and 21.5. The ethnic profile of the respondents in 2006 was identical to that in the previous survey. Overall only 5% of the film workforce was from minority groups, below the national all-sectors average of 7% and well below the London workforce average of 24%, which is a relevant comparator for the film industry in view of its concentration in London.

176 –UK Film Council Statistical Yearbook 2009 1

Table 21.4 Ethnicity of UK film production workforce, 2002 and 2006 3 All UK Respondents Respondents workforce 2002 2006 (LFS, 2004) Ethnic group %%% 4 White 95 95 93 Mixed 221 5 Asian or Asian British 1 1 3 Black or black British 1 1 2 6 Chinese ––– Other 111 7 Source: Skillset; ONS Labour Force Survey (LFS), quarterly supplement 2004.

Table 21.5 Ethnicity of London film production workforce, 2002 and 2006 8 London London All London respondents respondents workforce 2002 2006 (LFS, 2004) 9 Ethnic group %%% White 94 93 76 Mixed 32110 Asian or Asian British 1 1 11

Black or black British 1 1 8 11 Chinese –11

Other 11312

Source: Skillset; ONS Labour Force Survey (LFS), quarterly supplement 2004.

The disabled proportion of the film production workforce increased slightly from 2% to 3%, as shown in Table 21.6, 13 but is still less than the UK average of 5%.

Table 21.6 Disability, film production workforce, 2002 and 2006 14 All UK Respondents Respondents workforce 2002 2006 (LFS, 2004) 15 Workers who consider themselves to have a disability %%% Yes 235 No 98 97 95 16

Source: Skillset; ONS Labour Force Survey, quarterly supplement 2005.

Chapter 21: Employment in the film and video industries – 177 21 The age profile of the respondents in 2006 was somewhat more youthful than in the previous survey. The film production workforce was predominantly young, with 84% aged 49 or under (Table 21.7). The female age profile was significantly younger than the male, with 90% of women being under the age of 49. More of the respondents in 2006 were between 16 and 24 years (8% compared with 3% in 2002). People in film production appeared younger than in the wider workforce, with more than a third falling into the 25–34 year age band in comparison with a fifth of the UK workforce as a whole. The increase in the female percentage in the 16–24 and 25–34 age groups is consistent with the slight growth overall in the female percentage of the workforce, suggesting increased entry of younger women into film production.

Table 21.7 Age distribution of film production workforce, 2002 and 2006 All UK workforce (LFS, Respondents 2002 Respondents 2006 Nov 06-Jan 07) Age group Male % Female % All % Male % Female % All % All % 16–24 34379814 25–34 26 41 31 27 45 34 21 35–49 46 42 45 46 37 42 38 50+ 25 13 21 21 10 16 26 All ages 100 100 100 100 100 100 100

Source: Skillset; ONS Labour Force Survey (LFS), quarterly supplement March 2007.

As Table 21.8 shows, slightly fewer respondents were married or living as a couple in 2006 than in 2002 (57% compared with 61%). In addition more were single (38% compared with 32%).

Table 21.8 Marital status of film production workforce, 2002 and 2006 Respondents Respondents 2002 2006 Marital status %% Married or living as couple 61 57 Single and never married 32 38 Divorced or separated 75 Widowed ––

Source: Skillset.

Just over a quarter (27%) of respondents reported living with at least one dependent child under 16 years, which was a slight drop in comparison with the third in 2002 (Table 21.9). As in 2002 however, the proportion of male respondents living with dependent children was considerably greater than the proportion of female respondents (40% compared with 14%).

178 –UK Film Council Statistical Yearbook 2009 1

Table 21.9 Family status of film production workforce, 2002 and 2006 3 Respondents 2002 Respondents 2006

Male % Female % All % Male % Female % All % Living with dependant child(ren) under 16 39 21 33 40 14 27 4

Source: Skillset.

More results from the feature film production workforce surveys are available from the full reports, which can be seen 5 on the Skillset website.

6 21.3 The gender of writers and directors of UK films Since 2005, the UK Film Council has been studying the under-representation of women among screenwriters of UK films. This has been the subject of two reports Scoping Study into the Lack of Women Screenwriters in the UK 7 (IES, 2006) and Writing British Films – who writes British films and how they are recruited (Susan Rogers, Royal Holloway and UK Film Council, 2007). See the web-link for these reports at the end of the chapter. The combined conclusion of these reports is that female under-representation is an aspect of a commissioning process 8 that tends to recruit writers who:

•Are already known to the commissioning producers and/or 9 •Are members of the Writers Guild of America and/or •Have American agents (even if they are British). 10 At the time these reports were commissioned, evidence suggested that around 10% of UK films had a female director and around 15% of UK films had a female writer. Of the 168 identified writers of UK films in 2008, 29 (17%) were women (Table 21.10). 11

Table 21.10 Gender of writers of UK films released in the UK, 2008 12 Year 2008 Number of UK titles released in the UK 111 Number of writers associated with these titles 168 13 Number of male writers 138

Number of female writers 29 14 % female 17.3%

Source: UK Film Council. 15

While this is a low proportion, it is an increase on 2006 and 2007 (see Chapter 19, 2008 Statistical Yearbook) when only 15% and 12% of writers were women. 16 The absolute number of female writers associated with released UK films was also up in 2008, to 29 (from 23 and 20 in the previous two years). Some of the female writers associated with UK films released in 2008 were: Catherine Johnson (Mamma Mia!), Sharman MacDonald (The Edge of Love), Sharon Maguire (Incendiary) and Gurinder Chadha 17 (Angus, Thongs and Perfect Snogging).

Chapter 21: Employment in the film and video industries – 179 21 Table 21.11 shows directors by gender for UK films released in the UK in 2008.

Table 21.11 Gender of directors of UK films released in the UK, 2008 Year 2008 Number of UK titles released in the UK 111 Number of directors associated with these titles 113 Number of male directors 100 Number of female directors 13 % female 11.5%

Source: UK Film Council.

While also low (12%), the proportion of female directors was higher than in 2006 (9%) and 2007 (6%). Some of the 13 female directors associated with UK films released in 2008 were: Gillian Armstrong (Death Defying Acts), Gurinder Chadha (Angus, Thongs and Perfect Snogging), Jan Dunn (Ruby Blue), Phyllida Lloyd (Mamma Mia!) and Sharon Maguire (Incendiary).

21.4 The workplace location The film production and distribution sectors are concentrated in London and the South East, as shown in Table 21.12. In contrast, the London and South East share of the exhibition sector workforce is closer to the UK average.

Table 21.12 London and South East employment as percentage of total, 2008 London and London and Total UK South East South East Sector SIC employment employment as % of UK total UK all industries 29,384,765 8,189,906 27.9 Film and video production 9211 21,113 16,620 78.7 Film and video distribution 9212 2,751 1,584 57.6 Film exhibition 9213 11,551 2,595 22.5

Source: Labour Force Survey, ONS. The South East region wraps around London to include the major studios to the west of London. Note: Totals shown in this table are averages of the four calendar quarters from October 2007 to September 2008.

The London and South East share of the film and video production workforce was 79% in the year to September 2008 (75% in 2007). Figure 21.3 suggests that the share of the film and video production workforce in London and the South East is close to the level prevailing in the early 2000s. The London and South East share of the distribution workforce fell to 58% from 85% last year. The falls in its London and South East share as well as its total workforce size (2,751 to September 2008 compared with 4,521 in 2007) may be due to statistical error arising from the small sample size of the Labour Force Survey at industry sub-sector level.

180 –UK Film Council Statistical Yearbook 2009 1

Figure 21.3 London and South East percentage share of the film and video production and 3 total workforce, 1999–2008

% 4 90

70 5

50 6 40

20 7 10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 8 Film and video 68.7 76.2 76.9 72.0 73.3 57.6 70.5 77.1 74.8 78.7 production

UK all 28.0 28.0 28.1 28.2 27.6 27.4 27.4 27.5 27.5 27.9 9 industries

Source: Labour Force Survey, ONS. Notes: 1. Year means the year to September of the year. See footnote to Figure 21.1 for explanation. 10

21.5 The scale of the workplace 11 Each year, the Office for National Statistics conducts a survey of businesses, called the Annual Business Inquiry (ABI), which provides information on the number of employees in each workplace, by industrial sector. The latest available data are for 2007 and those relating to the film industry are shown in Tables 21.13 to 21.15. 12 Figures reported in Sections 21.1 and 21.4 are based on the Labour Force Survey (LFS) which includes freelancers. For this reason the LFS figures should, in principle, be higher than those based on the ABI which includes employees 13 only. However this is not always the case. There are at least two possible sources of the variation: sampling error arising from small LFS sample size at industry sub-sector level and the fact that there are two industry classification processes involved. In the LFS, individuals are classified by industry depending on the industrial information they give, whereas in the ABI the industry classification is based on companies’ activities. As people and companies often work 14 across more than one industry (television and film for example) this gives rise to unpredictable variations between the LFS and the ABI measures. 15 Nomis (the official labour market statistics online database) provides ABI data for England, Wales and Scotland only. Figures for Northern Ireland are reported separately by the Department of Enterprise, Trade and Investment (DETI) and are shown in Table 21.16. The different characteristics of the three sectors stand out clearly in these tables. 16 The film and video production sector had a very high number of small workplaces (97% in the 1–10 band), accounting for a majority of the sector’s total workforce (58%), as Table 21.13 shows. At the other end of the scale, there was a small number of large workplaces. The 36 workplaces with 50 or more employees accounted for 5,117 17 employees, an average of 142 each.

Chapter 21: Employment in the film and video industries – 181 21 Table 21.13 Film and video production (SIC 9211) workplace size distribution (employees) for England, Wales and Scotland, 2007 Number of Number workplaces % of total of employees % of total Workplace size band in band workplaces in band employees 1–10 7,696 97.1 12,193 57.7 11–49 193 2.4 3,840 18.2 50+ 36 0.5 5,117 24.2 Total 7,925 100.0 21,150 100.0

Source: Annual Business Inquiry, ONS.

The distribution sector was not as concentrated in small workplaces as the production sector, with four-fifths of the employees working in workplaces with 11 or more employees (Table 21.14).

Table 21.14 Film and video distribution (SIC 9212) workplace size distribution (employees) for England, Wales and Scotland, 2007 Number of Number workplaces % of total of employees % of total Workplace size band in band workplaces in band employees 1–10 396 87.2 872 18.0 11+ 58 12.8 3,971 82.0 Total 454 100.0 4,843 100.0

Source: Annual Business Inquiry, ONS.

Workplace numbers for bands above 11 employees cannot be published for confidentiality reasons (too few workplaces in the bands). Some 63% of distribution employees worked in workplaces of 50 employees or more, while a small number of workplaces had 200-plus employees. Table 21.15 shows that the exhibition sector had a concentration that was the reverse of the production sector with 55% of employees in workplaces of 50 or more and only 4% in workplaces in the 1–10 employee band.

182 –UK Film Council Statistical Yearbook 2009 1

Table 21.15 Film exhibition (SIC 9213) workplace size distribution (employees) for England, Wales and Scotland, 3 2007 Number of Number workplaces % of total of employees % of total Workplace size band in band workplaces in band employees 4 1–10 193 35.2 637 3.8

11–49 225 41.0 6,852 41.1 5 50+ 131 23.9 9,195 55.1

Total 549 100.0 16,684 100.0 6

Source: Annual Business Inquiry, ONS.

Due to the ‘disclosive’ nature of workplace statistics reported for Northern Ireland (too few units in certain size 7 bands), the three SIC categories have been combined under the SIC code of 921, as shown in Table 21.16. The latest available data are from the 2007 Census of Employment for Northern Ireland. Two-thirds (67%) of the workplaces had 10 employees or less while 90% (88% in 2005) of the employees were in workplaces of 11 or more employees. 8 The number of small workplaces (10 employees or less) in 2007 had increased by 10 percentage points from 57% in 2005.

9 Table 21.16 Film and video industry (SIC 921) workplace size distribution (employees) for Northern Ireland, September 2007 Number of Number 10 workplaces % of total of employees % of total Workplace size band in band workplaces in band employees

1–10 43 67.2 97 9.8 11 11+ 21 32.8 890 90.2 Total 64 100.0 987 100.0 12 Source: Northern Ireland Census of Employment, Department of Enterprise, Trade and Investment (DETI).

The declining trend in the proportion of employment in workplaces with 50 or more employees in the film and video 13 production sector in the early part of the last decade has been reversed in recent years. In contrast, the rapid growth in the proportion of employment in workplaces with 1–10 employees from 1996 has slowed and reached a level of just below 60% of the sector as a whole in 2007 (Figure 21.4). 14

Chapter 21: Employment in the film and video industries – 183 21 Figure 21.4 Film and video production sector (SIC 9211) employees by workplace size band, percentage of total, 1996–2007 % of sector workforce 70

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

1–10 employees 46.9 50.3 55.6 57.2 57.9 57.2 59.4 56.2 58.8 58.2 59.0 57.7

50+ employees 28.3 25.7 25.6 21.3 22.9 17.3 17.4 23.7 21.5 25.321.9 24.2

Source: Annual Business Inquiry, ONS Note: These figures cover England, Wales and Scotland only. Workforce data from 1996 to 1997 were re-scaled to be comparable with the current series of ABI.

In the exhibition sector the proportion of employees in the 50-plus category has experienced a dip from its gradual rise over the last decade, while the proportion in the 11–49 category has seen a revival since 2004, as shown in Figure 21.5. This reflects a growth in the number of medium-sized units.

184 –UK Film Council Statistical Yearbook 2009 1

Figure 21.5 Film exhibition sector (SIC 9213): employees by workplace size band, percentage of total, 1996–2007 3 % of sector workforce 80

70 4

50 5 40

30 6 20

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 7

11–49 employees 56.8 40.5 25.1 36.6 51.8 36.1 34.2 41.1 32.1 39.5 44.3 41.1

50+ employees 35.4 52.1 68.0 56.1 42.2 59.3 61.8 54.6 63.9 56.8 51.6 55.1 8

Source: Annual Business Inquiry, ONS. Note: These figures cover England, Wales and Scotland only. Workforce data from 1996 to 1997 were re-scaled to be comparable with the current series of ABI. 9

See also: 17 •For the reports on under-representation of women among screenwriters of UK films, Scoping Study into the Lack of Women Screenwriters in the UK and Writing British Films – who writes British films and how they are recruited, see www.ukfilmcouncil.org.uk/publications 18 •For more information on film distribution, see Chapter 9 (page 68)

•For details of the exhibition sector, see Chapter 10 (page 73) 19 •For more background on film production, see Chapter 17 (page 134)

•Skillset website: www.skillset.org. 20

Chapter 21: Employment in the film and video industries – 185 21 Glossary DCMS Department for Culture, Media and Sport. Asian programming The government department that sponsors the UK Films originating from South Asia, for example Film Council Bollywood, and generally, though not exclusively, aimed at a South Asian audience and in a South Asian language DEFRA Department for Environment, Food and Rural Affairs. BAFTA The UK government department responsible for the British Academy of Film and Television Arts environment, food and rural affairs BARB Digital Cinema Initiatives Broadcasters’ Audience Research Board Ltd. The company Digital Cinema Initiatives, LLC (DCI) was created in March that compiles audience figures for UK television 2002 and is a joint venture of Disney, Fox, Paramount, (www.barb.co.uk) Sony Pictures Entertainment, Universal and Warner Bros BBFC Studios. Its primary purpose is to establish and document British Board of Film Classification. Independent body voluntary specifications for an open architecture for responsible for classifying films and video (see Film digital cinema that ensures a uniform and high level of classification) (www.bbfc.org.uk) technical performance, reliability and quality control (www.dcimovies.com) Blu-Ray disc An optical disc format that can store up to 50 Gb of data, DLP Cinema almost six times the capacity of a dual layer DVD. It uses a The trademark of Texas Instruments’ digital projection short wavelength blue-violet laser to read and write system. DLP stands for ‘digital light processing’ information to disc Digital projection Box office The projection of a film onto a cinema screen using a Total value of ticket sales for a film screened commercially digital master and a digital projector, that is using at cinemas electronic signals to direct light onto the screen rather than passing light through a celluloid strip Box office gross Box office takings before deduction of Value Added Tax Digital terrestrial television (DTT) (VAT) Multi-channel television delivered free to the consumer by means of a signal decoder between the aerial and the BVA television set British Video Association. The trade body representing the interests of publishers and rights owners of pre- Distributor recorded home entertainment on video A person or company that acquires the right to exploit (www.bva.org.uk) the commercial and creative values of a film in the theatrical, video and TV market. Also undertakes the CAA promotional and marketing activities to attract Cinema Advertising Association. The trade association of audiences to the film cinema advertising contractors operating in the UK and Republic of Ireland Download See ‘Film download’ Concession revenue Revenue from sales of food, drink and merchandise Download to Own (DTO) at cinemas The purchase of permanent film downloads for storage on hard drive, and in some cases to burn an additional Co-production copy to DVD A film made by companies from more than one country, often under the terms of a bilateral co-production treaty DVD or the European Convention on Cinematographic Digital versatile disc Co-Production Exhibitor Country of origin A cinema operator that rents a film from a distributor to The nationality of a film. In the case of co-productions, show to a cinema audience this may include more than one country

186 –UK Film Council Statistical Yearbook 2009 Feature film HMT A film made for cinema release, as opposed to a film Her Majesty’s Treasury. The government department made for television, and usually of at least 80 minutes responsible for formulating and implementing the duration Government’s financial and economic policy Film classification Inward features Classification given to a film by the British Board of Film A term used by the UK Film Council to denote a film Classification. Indicates the film’s suitability for audiences which is substantially financed and controlled from according to their age outside the UK and which is attracted to the UK by script requirements (eg locations) and/or the UK’s film-making Film download infrastructure and/or UK tax incentives A digital version of a film transferred (either officially or unofficially) from the Internet to a personal computer. In Internet Protocol Television (IPTV) future, downloads may go directly to television sets via Television connected to the internet that uses internet game consoles, internet protocol television or dedicated digital protocols to communicate data set-top boxes ISBA TV Regions Film rental System for classifying regions developed by the The sum of money paid to the distributor by the exhibitor Incorporated Society of British Advertisers for use by the in return for the right to show a particular film. Usually advertising industry calculated as a percentage of net box office Mainstream programming Franchise Category of films aimed at the general audience A film series such as Harry Potter and the Philosopher’s Megaplex site Stone and its sequels Defined by Dodona Research as a purpose-built cinema Gross Domestic Product (GDP) with 20 or more screens A measure of a country’s income and output. GDP is Multiplex site defined as the total market value of all final goods and Dodona Research defines a multiplex as a purpose-built services produced within the country in a given period of cinema with five or more screens time. GDP is also the sum of the value added at each stage of the production process. ‘Gross’ refers to the fact Near-Video on Demand (nVoD) that GDP includes capital investment but does not A system which allows television viewers to purchase subtract depreciation individual films to view. The film is shown at the same time to everyone ordering it, as opposed to true-video on Genre demand, which allows the viewers to see the film at any A style or category of film defined on the basis of time. Films can be purchased via an on-screen guide, common story and cinematic conventions (eg action, automated telephone or customer services line. Also crime, romantic comedy, drama etc) referred to as pay-per-view Government Office Regions Net box office Classification of English regions used to establish the Box office takings after deduction of VAT boundaries of the Regional Development Agencies and the Regional Screen Agencies Multi-channel television Digital television programming carried by satellite, cable HD-DVD or freeview delivery systems, in this case excluding the High-definition digital versatile disc. A high-density five main network channels (BBC1, BBC2, ITV1, C4 and optical disc format designed for the storage of data and Five) high-definition video. Abandoned in February 2008 after Blu-Ray prevailed in the competition to become the next Online rental generation DVD format Selecting and renting DVDs via a website for postal delivery HMRC Her Majesty’s Revenue and Customs. The government ONS department charged with collecting revenue on behalf of Office for National Statistics the Crown Out of town cinema Cinema located on the outskirts of a town, typically in a large shopping development

Glossary – 187 PAYE VHS Pay As You Earn. A method of collecting income tax and Video home system. Standard format for cassette tapes national insurance where these are deducted at source by containing recorded films and other audiovisual content the employer and remitted to HMRC Video on Demand (VoD) Pay-per-view A system that allows users to select and watch films on See Near-Video on Demand television, PC or mobile device at the time they want over an interactive network. The user can buy or rent films and Pay-TV download them before viewing starts or stream content A satellite or cable television system in which viewers pay to be viewed in real time a subscription to access television content

Personal computer (PC) Acknowledgments A lap-top or desk-top computer capable of operating independently of a network (although frequently We would like to thank the following organisations for networked in office environments) kindly allowing us to reproduce their data: Personal video recorder (PVR) Attentional Ltd A digital set-top box with hard drive capable of storing Beacon Dodsworth large amounts of audiovisual content British Board of Film Classification (BBFC) PlayStation Portable (PSP) A portable games console made by Sony that can be British Federation of Film Societies (BFFS) used to view VoD content British Market Research Bureau (BMRB) Standard Industrial Classification (SIC) British Video Association (BVA) A numbering system used by the Office for National Statistics to identify different industries in the UK’s official Broadcasters’ Audience Research Board Ltd (BARB) statistics Cinema Advertising Association (CAA) Sites Department for Culture Media and Sport (DCMS) Individual cinema premises Department for Environment, Food and Rural Affairs Socio-economic group (DEFRA) Section of the population defined by employment status Dodona Research Specialised programming Generally, non-mainstream films. This category includes European Audiovisual Observatory (EAO) foreign language and subtitled films, art-house Motion Picture Association of America (MPAA) productions and films aimed at niche audiences Nielsen EDI Terrestrial television The five main free-to-air channels: BBC1, BBC2, ITV1, Nielsen Media Research Channel 4 and Five Office for National Statistics (ONS) Traditional cinema Official UK Charts Company A cinema generally with fewer than five screens and that shows more mainstream product. Often an older PricewaterhouseCoopers building located in city centres or suburbs Screen Digest UK and Republic of Ireland Skillset The distribution territory comprising the UK and Republic of Ireland. Where this publication indicates a film has TNS been released ‘in the UK and Republic of Ireland’ it refers Please note that no material in this Yearbook may be to the distribution territory and not necessarily to an reproduced in any form without prior permission from actual release in both countries the authors or copyright owners. UMD Universal media disc. An optical disc medium developed by Sony for use on the PlayStation Portable

188 –UK Film Council Statistical Yearbook 2009 Sources •Ofcom, Movie markets in the UK, Annex 11 to pay TV market investigation consultation – a report by Screen Chapters 1 to 10: Films, talent, release history, distribu- Digest, December 2007 tion and exhibition • Screen Digest, Online Movie Strategies: Competitive •Nielsen EDI, weekly UK and international box review and market outlook, 2007 office reports •TNS, Disability and ethnicity groups within visual •Independent Film and Television Alliance (IFTA), entertainments, 52 weeks ending 4 January 2009 international box office database

•Cinetel (Italy), box office reports Chapters 16 to 21: The UK film industry, British film •Motion Picture Association of America, US certification, film production, employment and public admissions report investment in film in the UK •European Audiovisual Observatory Lumière database Sources from previous chapters, plus: •Dodona Research, Cinema-going 18 April 2009 •Department for Culture Media and Sport, British film certification database • Screen Digest, digital screen numbers •UK Film Council Film Certification Unit, British film •British Board of Film Classification (BBFC), database of certification database film classifications •PricewaterhouseCoopers, Global Entertainment and •Nielsen Media Research, monthly media spend reports Media Outlook 2008–2012 • Variety, Top Worldwide Grossers 2008, 19-25 January •European Audiovisual Observatory, 2008 Yearbook, 2009 Volume 3 •The Internet Movie Database (IMDb) •Office for National Statistics, Annual Business Inquiry, •Nielsen EDI, Filmsource database 2008 •Beacon Dodsworth, UK population data by ISBA •Office for National Statistics, Labour Force Survey, TV region Quarterly to September 2008 •Department for Environment, Food and Rural Affairs, •Office for National Statistics, 2007 Film and Television map of cinema-deprived areas in England Survey, December 2008 •Office for National Statistics, Size Analysis of UK Chapters 11 to 15: Films on video, television, VOD Businesses 2007 (VAT and PAYE data), 2008 and audiences •Skillset, Film production workforce survey, 2008 •British Video Association, BVA Yearbook 2008 •Oxford Economics, The Economic Impact of the •Official UK Charts Company, video charts UK Film Industry, July 2007 •Broadcasters’ Audience Research Board, Television •Northern Alliance, public investment in film 2007/08, Audience Measurement Service March 2009 •Attentional Ltd , database of film on UK television, 2008 • Screen Digest, Global Media Intelligence (monthly), Online Movie Strategies (report) and online data services •Cinema Advertising Association, 2008 Film Monitor (Quarterly Reports) and FAME: Film Audience Measurement and Evaluation report, 2008 •European Audiovisual Observatory and DDM – Video on Demand in Europe – a report by NPA Conseil, Strasbourg, France, 2007

Sources – 189 UK Film Council 10 Little Portland Street London W1W 7JG T +44 (0)20 7861 7861 F +44 (0)20 7861 7862 This Statistical Yearbook is available online at www.ukfilmcouncil.org.uk